Chipotle’s Health Scares Do Little For Competitors

After their third straight quarter of declining sales, things continue to look bleak for the once-great Chipotle. The company posted sales this quarter down 24% from the previous year, and quarterly profits of $26 million (compared to $140 million immediately before the E. Coli outbreaks late last year).

One might think that such a plummet would be good news for competitors, but so far the opposite seems to be the case, with other Mexican fast food and fast-casual chains seeing a decline as well. Taco Bell’s same-store sales fell 1%, due in part to a decrease in foot traffic despite hefty advertising dollars spent selling items like the “Quesalupa.” Qdoba on the other hand tried to specifically target Chipotle customers, but claims such ads and promos ultimately hurt their margins.

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