Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Chipotle Mexican Grill, Inc. (“Chipotle” or the “Company”) (NYSE: CMG) common stock between February 8, 2024 and October 29, 2024, inclusive (the “Class Period”) and those who purchased Chipotle call options or sold put options during the class period. Chipotle investors have until January 10, 2025 to file a lead plaintiff motion.
Investors suffering losses on their Chipotle investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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.
If you purchased Chipotle common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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