Chipotle Stock Drops as Profit, Forecast Disappoint Investors

Friday, 19 Oct 2012 12:05 PM

 

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Chipotle's stock is taking a big hit from investors worried that years of lightning-fast growth are over.

The burrito maker's stock has fallen more than 13 percent in morning trading and is at its lowest point in more than a year.

Late Thursday, Chipotle Mexican Grill Inc. said its third-quarter revenue and net income both grew. But the growth was slower than last year. The company's results missed Wall Street expectations.

Earlier this month, hedge fund manager David Einhorn talked down Chipotle's stock. He said Chipotle faced higher costs for food and employee health care and a big challenge from Yum Brands Inc.'s Taco Bell. Weakening customer traffic could make it hard for Chipotle to raise prices.

Chipotle shares are down $39.34, or 13.8 percent, to $246.59 in late morning trading.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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