Chipotle Mexican Grill Inc. hasn’t found the bottom.
Shares of the burrito chain (CMG.N) plunged as much as 7 per cent on Friday, after a report from Cowen & Co. said that traffic at its restaurants had declined in the first week of February. The shares traded as low as US$$247.52, the lowest intraday price since October 2012. The NYSE-listed shares closed Friday trading at US$255.46 down US$10.55, or 3.97 per cent.
On a day when the S&P 500 Index touched a three-month low, Chipotle was among its worst- performing stocks. The restaurant chain has dropped about 18 per cent this week, during a broader market selloff.
The company reported disappointing earnings after the close on Tuesday, saying it was still struggling to draw customers back to its restaurants more than two years after a wide-ranging food-safety crisis burst into view.
The company’s shares reached a record high of US$757.77 in August 2015. Since then, they have lost two-thirds of their value.
Advertisement