NEW YORK, Aug. 24, 2012 /PRNewswire/ -- 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.
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If you purchased Chipotle securities between February 1, 2012 and July 19, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/CMG. You can also 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 [email protected] or [email protected] Faruqi & Faruqi, LLP also encourages anyone with information regarding Chipotle's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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