Faruqi & Faruqi, LLP Encourages Investors Who Suffered Substantial Losses Investing In Chipotle Mexican Grill, Inc. To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Chipotle Mexican Grill, Inc. (“Chipotle” or the “Company”) (NYSE: CMG).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Chipotle lacked the ability to implement price increases sufficient to offset rising food costs and, as a result, the Company’s profit margins would diminish as Chipotle would be unable to pass increased commodity costs off to consumers; (2) demand for Chipotle was slowing down due to negative economic conditions combined with increased competition, and would fail to support the Company’s aggressive 2012 earnings forecasts; and (3) Chipotle was experiencing a deceleration of growth as it was becoming a mature company.
On July 19, 2012, Chipotle issued a press release announcing the Company’s second quarter 2012 financial results. The Company also disclosed disappointing revenue figures and issued cautious guidance for the rest of the year. As a result of this news, Chipotle’s share price plunged by $86.88 per share to close at $316.98 per share on July 20, 2012, a decline of 22% on volume of 9.8 million shares. This was the largest one-day stock decline in the Company’s history.
If you purchased Chipotle securities between February 1, 2012 and July 19, 2012 and would like to discuss your legal rights, contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Chipotle’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.