Chipotle (CMG) - Get 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.
"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.
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