The firm also does not believe in the company's planned 5% price increase in this environment, believing that the increase will give former customers a reason to switch to cheaper alternatives.
The firm cut the company's rating to "under perform" from "market perform" while also slashing its price target to $250 from $370. Cowen also lowered the company's fiscal 2017 EPS estimate to $7.13 per share from $7.50 per share and its fiscal 2018 EPS estimate to $9.50 from $10.55.
Chipotle shares were down 4.7% to $302.49 in morning trading Friday.
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