Whole Foods stock is down 41 percent this year and, as investors start to question the company's future growth potential, a branding crisis with consumers is brewing.
In June, New York City's Department of Consumer Affairs released a report that alleged Whole Foods was overcharging customers. That expose only accentuated what their customers knew — this place is expensive.
But it wasn't just limited to New York City: On a conference call with analysts recently, Whole Foods CFO Glenda Flanagan admitted those negative news stories in New York led to lowered sales across the country.