Chipotle Mexican Grill, Inc. (CMG) saw its stock decline by 1.05% to close at $62.05 on November 27, 2024, with a further drop of 4.94% in after-hours trading. The stock opened at $62.55 and fluctuated between a high of $62.69 and a low of $61.51, with trading volume at 57% of its average. The decline comes amid legal challenges, as multiple law firms have announced class action lawsuits against Chipotle, alleging securities fraud related to inconsistent portion sizes and misleading statements about the company's operations. These legal issues have likely contributed to investor uncertainty and the stock's downward pressure.
Additionally, discussions on social media platforms like Reddit have highlighted customer dissatisfaction with Chipotle's food shortages and portion sizes, which may be affecting consumer sentiment. The company's potential price hikes to offset rising ingredient costs, as reported by its CFO, could also be weighing on investor confidence. Despite these challenges, Chipotle's recent financial performance showed a 6% increase in same-store sales and a 13% rise in revenue for the quarter ending September 30, 2024.