NEW YORK — Chipotle’s stock is taking a big hit from investors worried that years of lightning-fast growth are over.
The burrito maker’s stock fell 15 percent Friday and is at its lowest point in more than a year, threatening to end its run as an investor darling. The culprit? A one-two punch of slowing growth and worrisomely high food costs caused by this summer’s drought.
Chipotle shares closed down $42.93, at $243. They have lost 28 percent since the beginning of the year. The stock’s all-time closing peak of $442.40 in April capped a three-year run that saw its stock price increase nearly tenfold.
Late Thursday, Chipotle Mexican Grill Inc. said its third-quarter revenue and net income both grew. But the growth was slower than last year. The company’s results missed Wall Street expectations. Another concern was a weakening sales forecast.
Chipotle predicted revenue growth in stores open at least a year would be flat to up in the low single digits next year. That’s down from this year, when it expects the metric to be up in the middle single digits, and significantly lower than last year’s 11.2 percent gain.
Chipotle also announced Thursday it will open its second Asian-themed ShopHouse location in Santa Monica, Calif., in the first half of 2013. The Associated Press
