
Chipotle Has Yet Another Problem to Overcome
Chipotle (CMG) - Get Chipotle Mexican Grill, Inc. Report stock was declining by 2.11% to $343.05 on Monday afternoon, as the fast casual Mexican food restaurant chain is working to come back from another food illness scare, and now has another issue, losing favor with growth fund managers.
Chipotle is too expensive to attract value-oriented funds to replace the growth funds, Reuters reports. There are 387 mutual funds that hold Chipotle stock, of that only seven are value funds.
The funds have been selling their Chipotle shares over the last three months.
TheStreet Recommends
"It's transitioning from a high-growth name to a more normal restaurant company, and they are starting to have to spend more on advertising and make changes to their menu that they didn't have to worry about before," Canaccord Genuity analyst Lynne Collier told Reuters.
More of What's Trending on TheStreet:
- These Are the 5 Worst Tech Stocks to Own
- Watch for the Trading Opportunities That Rebalancing Could Offer Today: Market Recon
- McDonald's Has One Restaurant in Poland That Looks Like the Future of the Golden Arches
- This Is Why President Trump Can Now Blame Apple for Atlantic's Reporting