Chipotle shares could plunge unless growth revives: Barron's

Sun Jul 5, 2015 4:01pm EDT
 
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NEW YORK (Reuters) - Shares of Chipotle Mexican Grill Inc CMG.N have lost some of their luster recently and unless growth revives at the company, the stock could see a 15 percent to 20 percent plunge, the July 6 edition of Barron's said.

Chipotle's stock could drop below $500 a share after the burrito chain reported revenue slightly below expectations in April and said the removal of pork from one-third of its restaurants would hurt sales this year, Barron's said.

Rising food costs, along with rising healthcare and other costs, are crimping Chipotle, it said. Since peaking at $727.17 in early January, the fast-rising stock has fallen about 16 percent and closed Thursday at $609.56.

Chipotle did not immediately respond to a request for comment.

(Reporting by Herbert Lash; Editing by Eric Walsh)

 
The sign for Chipotle Mexican Grill's restaurant is seen in Westminster, Colorado October 17, 2013. REUTERS/Rick Wilking