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Chipotle's stocks drop after Ells admits 'nervous' about 2017 outlook

December 7, 2016

Chipotle's Steve Ells isn't satisfied with the rate of recovery and the quality of the experience offered to customers. He addressed investors Tuesdays at a Barclays conference, saying that he'd give about 50 percent of the company's 2,000 restaurants scores of "C, D or F."

He said that the low-performing restaurants were suffering from untidy dining rooms, dirty soda filling stations and slow lines, caused by rolling out too many new operating procedures at once.

"We took our eye off the ball on customer service," Ells said.

The chain tried to implement about 80 procedures in a year to combat its food safety issues, which made working at Chipotle tougher, causing employees to quit, Ells said. The chain usually only adds about eight new operating procedures annually.

Ells also admitted that he was "nervous" about next year's outlook.

Ells comments led to a plunge in Chipotle stock, which dropped as much as 7 percent to $368, according to The Street.