A more expensive menu, which has helped Chipotle Mexican Grill pass on the cost of inflation to its customers in the last couple of years, is beginning to cool off the company’s feverish growth.
On Oct. 29, the popular Mexican restaurant chain reported an annual sales growth of 13 percent in the third quarter, down from 18 percent in the second quarter.
The slowdown in the third quarter came as the company continued to hike prices by 2.7 percent, suggesting that these price hikes are beginning to impact consumer demand.
Wall Street was disappointed by the slowdown in Chipotle’s sales growth, sending its shares 2.5 percent lower in after-hours trade. The stock is up 32.25 percent for the year, outperforming the benchmark S&P 500 Index, which is up 22.29 percent year to date….