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Chipotle News: Why CMG Stock Is Plunging Today

William White

Chipotle news concerning the company’s earnings report for the first quarter of 2019 has CMG stock dropping on Thursday.

Chipotle News: Why CMG Stock Is Plunging Today

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Chipotle (NYSE:CMG) notes in its most recent earnings report that it has received a new subpoena in connection to illnesses from several of its restaurants.

Here’s what it says about the new subpoena.

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“On April 18, 2019, we received a new subpoena requesting information related to illness incidents associated with the specific restaurants in Simi Valley, California, Boston, Massachusetts, Sterling, Virginia, and Los Angeles, California that were covered under the previous subpoenas, plus one additional restaurant in Powell, Ohio. We have fully cooperated and intend to continue to fully cooperate in the investigation. It is not possible at this time to determine whether we will incur, or to reasonably estimate the amount of, any fines or penalties in connection with the investigation pursuant to which the subpoenas were issued.”

This negative Chipotle news drags down CMG stock despite solid earnings for the quarter. This includes earnings per share coming in at $3.40. That’s better than the company’s earnings per share of $2.13 from the same time last year. It also beat out Wall Street’s earnings per share estimate of $2.99 for the period.

The Chipotle news release also includes revenue of $1.31 billion for the first quarter of 2019. The restaurant company reported revenue of $1.15 billion in the first quarter of 2018. Analysts were looking for revenue of $1.26 billion for the quarter.

CMG stock was down 4% as of Thursday afternoon.

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As of this writing, William White did not hold a position in any of the aforementioned securities.

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