Chipotle shares could plunge unless growth revives: Barron's
NEW YORK (Reuters) - Shares of Chipotle Mexican Grill Inc (CMG.N: Quote) 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)
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