Chipotle Mexican Grill Inc could be preparing for a major downshift in investor confidence. The team at Barron’s believes the company could see a cost per share downturn of 15 percent to 20 percent unless growth numbers are revived at the fast-casual restaurant chain.
According to Barron’s, Chipotle’s stock could drop below $500 a share after the burrito chain reported revenue slightly below expectations in April. The report also says Chipotle could be hurt after announcing the removal of pork from one-third of its restaurants.
The popular fast-casual chain has been suffering lately because of rising food costs, health care expenses, and other costs.
The company’s shares peaked at $727.17 in January and has fallen by 16 percent to a Thursday low of $609.56.
At this time, the company is attempting to revive sales and customer interest by launching marketing campaigns that show how the company is eliminating GMOs from all of its food products.