In early Friday trading, shares of Chipotle were down over 4% after the stock was downgraded.
Analyst Andrew Charles of Cowen & Co. downgraded the stock from “market perform” to “underperform” and cut its price target from $370 all the way down to $250. Charles cited poor results from a consumer survey for the drop according to CNBC.
“Proprietary survey data indicates Chipotle’s quality and value perceptions remain near trough levels, leading us to believe the sales recovery will continue to trail investor expectations,. We are concerned upcoming efforts to drive sales are not enough to improve these measures and in turn will not drive upside to investor same store sales expectations,”
Charles wrote in a Friday note to investors.
Disclaimer: We have no position in Chipotle Mexican Grill, Inc. (NYSE: CMG) and have not been compensated for this article.