Chipotle's Comeback Story Is Unraveling

Those hoping for a quick comeback for Chipotle Mexican Grill (NYSE: CMG) should get comfortable. It's going to be a long ride. The fast-casual chain reported its third-quarter results on Tuesday, coming up well short of expectations. The only thing more unsettling than Chipotle's numbers is the grainy cheese sludge it's trying to pass off as queso.

Chipotle managed to produce comparable sales growth of just 1% during the third quarter. Total revenue grew by 8.8% year over year, but that was almost entirely due to revenue from new stores. A 1% increase doesn't sound that bad on the surface, and it's certainly better than a decline. But that middling growth is off a severely depressed base.

Image source: Chipotle.

Source: Fool.com