Chipotle announced a six months ago that it would invest $1 billion in its Chinese operations, a move that was hailed as a bold, ambitious step in the fast-growing Asian restaurant chain’s growth.
However, the investment has proven to be a farce as sales in the region have continued to slide in recent months.
The company announced on Monday that its Chinese sales had dropped 6.6% in the first quarter of this year to $8.3 billion.
Chipotle was a surprise leader in China, with its share price soaring from $1.30 per share on Jan. 1 to $12.60 per share the following month, according to Bloomberg data.
But as sales have fallen, so have profits.
Last month, Chipotle reported a $1 million loss on $1,737 million in revenue.
Analysts expect a loss of around $1 per share for the quarter.