Shares of Chipotle Mexican Grill slid once again on Monday after the company was criticized by customers for its most recent addition to its menu.
On Monday, the restaurant chain was criticized on Social Media after it added ‘queso’ to its menu. Customers who have tried the said menu item commented and took it to social media on how disappointed they were about the product.
The company who has been continuously coming up with new ways to bring back customers to its branches has been suffering over the past couple of years due to a series of food-borne viruses and diseases one of which was the e.coli outbreak more than two years ago.
Aside from the diseases, the company has experienced a hit in its shares over the past years after Chipotle Mexican Grill faced numerous cases regarding unfair labor practices and concerns on the cleanliness and safety of their food.
Shares of the company slipped by more than 3% on Monday. CMG shares have lost around 60% since the e.coli outbreak last 2015. This year it has slipped by more than 15%.
Last week, the rating on the restaurant chain was downgraded by analysts after it was concluded that the quality and value of Chipotle’s products are still down which will lead to lower sales. This also concerns some investors to whether the company can still do something about their declining sales and how their recent efforts have failed to measure up to attract more investors.
The price rating on the company’s shares was lowered from $370 to $250. Chipotle shares previously traded at $301.87.
Just this July, the company faced an issue regarding the norovirus incident in one of its branches. Shares of the company recorded a new low in July after customers who ate in a Chipotle branch in Virginia tested positive for norovirus. Chipotle shares then were down by 4.5%.
By the end of August, Chipotle shares have hit a four-year low after Deutsche Bank lowered its rating on the stock’s price target by 19% to $250. According to the bank, the restaurant chain company has faced a lot of pressure during the past two years although some are still hoping that the stock might regain balance again.
The recent reaction to Chipotle’s recent menu item addition led to speculation that the company will be having a much harder time recovering and meeting customer expectations in the coming quarters.
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