Nearly two years after a string of food safety incidents, Chipotle Mexican Grill still isn't on solid ground.
The beleaguered burrito chain warned investors in a Securities and Exchange Commission filing on Monday that it plans on spending more on marketing and promotions as it works to win back diners and foresees expenses rising as much as 0.3 percent.
The company said that it expects same-store sales to still be in the high-single digits, but that didn't seem to quell investors' concerns. Shares of Chipotle fell more than 6.9 percent, marking it as the worst performer in the S&P 500 so far on Tuesday. The stock is having its worst selloff of the year.
"We remain Neutral on shares of Chipotle as we believe the sales and unit economic recovery ought to be further along 18 months after the initial food safety incidents," Peter Saleh, an analyst at BTIG, wrote in a research note Monday.
In the first quarter, the burrito chain saw same-store sales rise almost 18 percent, the first increase in more than a year for the company. Chipotle execs said the rebound was a result of more customers returning to the restaurant and spending more during their visit.
However, the company was lapping easy comparisons as same-store sales a year ago were down almost 30 percent. Chipotle will continue to have easy comparisons throughout the year.