Chipotle Mexican Grill customers think that the restaurant chain has shrunk its portion sizes and have been making sure to have their complaints heard on social media in recent weeks. The backlash has caused a continued slide for Chipotle’s shares, resulting in one of the worst weeks for the company’s stock in almost a year.
Chipotle’s stock dipped 8% in the past week, which resulted in a loss of around $7 billion in market cap. It closed at $57.67 on Friday, being 28.44% up year to date but 15.87% down compared to an all-time high of $68.55 per share in June.
Chipotle has been dealing with criticism about its portion sizes for a while but has denied the allegations. However, Wells Fargo analyst Zachary Fadem recently decided to order 75 burrito bowls from eight different Chipotle locations and found out that the portion sizes varied significantly after weighing them.
But, according to other analysts, the public backlash will wear out eventually, and this is an opportunity to buy the dip.
“Clearly, consumers are disgruntled by the value proposition across the industry and are pushing back. Any pullback in shares on this dynamic will be short-lived and represents a buying opportunity,” BTIG analyst Peter Saleh wrote in a note sent to clients earlier this week.