SAN DIEGO, Nov. 14, 2024 (GLOBE NEWSWIRE) — Robbins LLP announces that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Chipotle Mexican Grill, Inc. (NYSE: CMG) common stock between February 8, 2024 and October 29, 2024, and those who purchased Chipotle call options or sold put options during this time. Chipotle “owns and operates Chipotle Mexican Grill restaurants, which feature a relevant menu of burritos, burrito bowls (a burrito without the tortilla), quesadillas, tacos, and salads.”
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that Chipotle Mexican Grill, Inc. (CMG) Misled Investors Regarding the Impact of Customer Dissatisfaction on its Business
According to the complaint, during the class period, defendants failed to disclose that Chipotle’s portion sizes were inconsistent and left many customers dissatisfied with the Company’s offerings, and 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.
The complaint alleges that on July 24, 2024, Chipotle conducted its Q2 2024 earnings call, acknowledging that portion inconsistency was an issue at Chipotle, and that it had caused customers to feel justifiably unhappy with the Company. To combat the issue, Chipotle said it was “committed to making this investment to reinforce that Chipotle stands for a generous amount of delicious, fresh food at fair prices for every customer, every visit.” However, the Company would incur higher costs of sales in the third quarter of 2024, partially as a result of giving more generous portions. On October 29, 2024, Chipotle held its Q3 2024 earnings call, indicating that the cost of sales had increased from last year.
What Now: You may be eligible to participate in the class action against Chipotle Mexican Grill, Inc. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by January 10, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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