Chipotle stock gets big chill on growth worries

CHICAGO - JANUARY 26: The Chipoltle Mexican Grill logo is painted on the door of one of the Chain's restaurants in the trendy Bucktown neighborhood January 26, 2006 in Chicago, Illinois. McDonald's spin-off of the restaurant chain ended the day with the Initial Public Offering (IPO) closing at $44, double its opening price. It was the best opening day gain by a U.S.-based IPO in more than five years. (Photo by Scott Olson/Getty Images)
Scott Olson

NEW YORK Chipotle's (CMG) stock is taking a big hit from investors worried that years of lightning-fast growth are over.

The burrito maker's stock has fallen more than 13 percent in morning trading and is at its lowest point in more than a year.

Late Thursday, Chipotle Mexican Grill Inc. said its third-quarter revenue and net income both grew. But the growth was slower than last year. The company's results missed Wall Street expectations.

Earlier this month, hedge fund manager David Einhorn talked down Chipotle's stock. He said Chipotle faced higher costs for food and employee health care and a big challenge from Yum Brands Inc.'s Taco Bell. Weakening customer traffic could make it hard for Chipotle to raise prices.

Chipotle shares are down $39.34, or 13.8 percent, to $246.59 in late morning trading.