NEW YORK, NY / ACCESSWIRE / November 27, 2024 / Pomerantz LLP announces that a class action lawsuit has been filed against Chipotle Mexican Grill, Inc. ("Chipotle" or the "Company") (NYSE:CMG). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Chipotle and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until January 10, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Chipotle securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On July 24, 2024, on the Company's earnings call for the second quarter of 2024, Chipotle's Chief Executive Officer ("CEO") Brian Niccol acknowledged that portion inconsistency was contributing to consumer dissatisfaction at Chipotle's restaurants and stated that "the feedback caused us to relook at our execution across our entire system" and to "reemphasiz[e] training and coaching around ensuring we are consistently making bowls and burritos correctly." CEO Niccol further disclosed that the Company would have higher cost of sales in the third quarter of 2024, partially as a result of serving customers more generous portions.
On this news, Chipotle's stock price fell $1.95 per share, or 3.77%, over the following two trading sessions, to close at $49.83 per share on July 26, 2024.
Then, on October 29, 2024, Chipotle held its earnings call for the fourth quarter of 2024, in which it reported that "[c]osts of sales in the quarter were 30.6%, an increase of about 90 basis points from last year." On October 30, 2024, Business Insider published an article entitled "Chipotle says ensuring ‘consistent and generous portions' has taken a toll on its profitability", reporting in relevant part that "[p]rofit 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 per share, of 7.86%, to close at $55.73 per share on October 30, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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SOURCE: Pomerantz LLP