Chipotle Shares Tumble as Higher Marketing Costs Erode Margins
- Expenses may rise 0.3 percentage point from the prior quarter
- Chain says it started its largest advertising campaign ever
Chipotle Mexican Grill.
Photographer: Craig Warga/BloombergThis article is for subscribers only.
Chipotle Mexican Grill Inc. fell the most in six months as higher advertising and cyber security costs, seen eating into the chain’s margins, sparked a more pessimistic outlook from analysts.
Chipotle shares declined as much as 6.9 percent to $427.09 on Tuesday, the biggest intraday drop since Dec. 6. Through Monday’s close they had gained 22 percent this year, lifted by optimism that the company can bounce back from a string of foodborne illnesses that sickened customers in 2015.