NEW YORK (TheStreet) -- Shares of Chipotle (CMG) were lower in mid-morning trading on Tuesday, after three customers said they were suing the fast casual Mexican chain for misleading calorie counts. Chipotle's new chorizo burrito is listed as "300 calories" on its menu board. However, those calories only refer to the chorizo, not the full burrito.
The whole burrito contains chicken, pork, sausage, rice, beans and cheese and is closer to 1,050 calories, according to analysts.
"After eating the Chorizo Burrito, [Plaintiff David] Desmond felt excessively full and realized that the burrito couldn't have been just 300 calories," the complaint said.
"Basically they're saying that Chipotle does not accurately display, or misleads, people in their calorie counts," Fox Business' Ashley Webster said on this morning's "Varney & Company."
"You know what's going to happen?" Fox Business' Stuart Varney asked. "It's a class action lawsuit and they win. The lawyers get the cash. The plaintiffs get a free burrito for the next 10 weeks.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Chipotle as a Hold with a ratings score of C. The primary factors that have impacted the team's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
You can view the full analysis from the report here: CMGCMG data by YCharts