Chipotle's Stock Suffering Biggest Selloff This Year After Downbeat Outlook

By Tomi KilgoreMarketsMarketWatch Pulse

Shares of Chipotle Mexican Grill Inc. tumbled 6% in morning trade Tuesday, on track for the biggest one-day selloff so far this year, after the fast-casual Mexican food chain disclosed a downbeat sales outlook for the year. The stock, which was headed for the lowest close since March 28, has now lost 13% since closing at a 14-month high on May 16. The company stated in a filing late Monday, which followed its investor gathering, that it expected 2017 same-store sales growth in the "high single digits" percentage range, below the current FactSet consensus of a 10.1% rise. Chipotle also said it expected second-quarter operating costs as a percentage of sales "to be at or slightly higher" than the first quarter, indicated margins will decline. The stock was still up 14% year to date, while the SPDR Consumer Discretionary Select Sector ETF has rallied 11% and the S&P 500 has gained 9.3%.

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