Chipotle will seek alternatives to its ShopHouse restaurants
Chipotle Mexican Grill Inc. said it will seek strategic alternatives for its ShopHouse brand restaurants, after the Southeast Asian cuisine chain failed to gain traction. In a conference call with analysts, after Chipotle reported third-quarter earnings that missed expectations, the company said that ShopHouse "hasn't demonstrated the ability to support an attractive unit economic model," according to a transcript provided by FactSet. The ShopHouse concept started in 2011, and how has 15 restaurants in three markets. Chipotle said it took a $14.5 million charge to fully impair the assets related to ShopHouse. Chipotle's stock, which was little changed in recent after-hours trade, has tumbled 15% year to date, while the S&P 500 has gained 4.9%.
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