Chipotle Mexican Grill reported an increase in revenue, but fell short of analysts' expectations. The Mexican Grill Inc. stopped supplying carnitas in some of their locations — reason why the company wasn't able to meet its sales growth.
The sales of Chipotle increased to 4.3 percent, according to U.S. News. That was 1.4 percent short of the 5.7 percent that analysts were expecting.
Chipotle's profit for the quarter ending on June 30 rose to $140.2 million, at $4.45 per share. Its total revenue, including the new restaurants, is $1.2 billion.
Still, it fell short of the $1.22 billion expected revenue.
Chipotle Mexican Grill says it is still trying to restore pork supplies to more than 1,800 of its restaurants.
The shortage began in January. The company halted serving carnitas because they couldn't secure more pork after its supplier violated the animal welfare standards.
Around 95 percent of the pigs in the United States are being raised "conventionally," says the company. Apparently, they do not meet the standard requirements.
How are they going to address this shortage? Buzz Feed News has learned that Chipotle partnered with a pork supplier in the United Kingdom, Karro Food, to import supplies.
Compared to beef and chicken options, carnitas only has a small share of the total orders but the recent shortage had a negative impact on their sales. Chipotle said that shortage on pork supply is expected to be resolved by the end of the fourth quarter.
Meanwhile, prices in some Chipotle Mexican Grill locations have started to increase except for those areas with carnitas shortage, Quartz reported. Jack Hartung, CFO of Chipotle Mexican Grill Inc., said that they left the prices as it was so that people weren't forced to buy a different item from carnitas and pay more for it.
Hartung added that with carnitas returning over fall and summer, these areas would have an increase too.
Chipotle Mexican Grill said it will open around 200 new restaurants. The company is committed in providing a menu free of genetically modified organisms.
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
