Chipotle Mexican Grill, Inc.

Company: Chipotle Mexican Grill, Inc.
Ticker: CMG
Class Action Period: February 08, 2024 – October 29, 2024

0 Days Left Lead Plaintiff Deadline: January 10, 2025

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If you suffered a loss on your Chipotle Mexican Grill, Inc. investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below. Please note that submission of this form does not by itself form an attorney-client relationship nor does filling out this form mean you have joined any lawsuit.

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Additional Comments

Background

On July 24, 2024, Chipotle held its second quarter 2024 earnings call, during which, the Company addressed “the portion concerns that [had] been brought up on social media,” and revealed that the third quarter of 2024 would see a higher cost of sales as a result of giving customers more generous portions.

On this news, Chipotle’s stock price fell $1.95, or 3.9%, over two consecutive trading days, to close at $49.83 per share on July 26, 2024, thereby injuring investors.

Then, on October 30, 2024, Business Insider published an article stating that “profit margins for the chain suffered last quarter because of a concerted effort to provide ‘consistent and generous portions’ in every order.”

On this news, Chipotle’s stock price fell $4.76, or 7.9%, to close at $55.73 per share on October 30, 2024, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Chipotle’s portion sizes were inconsistent and left many customers dissatisfied with the Company’s offerings; (2) in order to address the issue and retain customer loyalty, the Company would have to ensure more generous portion sizes, which would increase cost of sales; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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