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Key Takeaways
- Chipotle Mexican Grill shares continued to fall Monday after setting a record high when shareholders approved a 50-to-1 stock split in June.
- The Mexican fast-food chain has been accused by some customers of reducing the size of its burrito bowls, which CEO Brian Niccol denies.
- Shares of Chipotle have lost about 13% since reaching an all-time high last month, but still have added almost a third of their value this year.
Chipotle Mexican Grill (CMG) was one of the worst-performing stocks in the S&P 500 on Monday, falling more than 5%, as investor excitement over the Mexican fast-food chain’s 50-for-1 stock split continued to fade.
Shares of the burrito company hit a record closing high on June 18 when shareholders approved the split, which took effect on June 26. Since then, though, they’ve slowly declined, losing about 13% of their value through today’s close.
Chipotle and other companies have lately been accused of “shrinkflation,” the idea of getting less for the same price. Some Chipotle customers have claimed their burrito bowls have become smaller, and they’ve taken videos of employees making them, posting the clips on TikTok.
Chipotle Chief Executive Officer (CEO) Brian Niccol in May told CNBC that the company has never done that, adding “the whole thing is kind of crazy to me.”
Monday’s selloff sent shares of Chipotle Mexican Grill to their lowest level since April. However, even with that drop, they have added about a third of their value in 2024.
The company’s next round of quarterly results are due July 24.