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The Markets
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Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Food & drink

Chipotle Mexican Grill biggest loser on S&P as marketing spend worries investors

The fast food group has been beset with issues in recent years including hacking and an e-Coli outbreak .

Chipotle Mexican Grill Inc (NYSE:CMG) , the burito chain, saw shares plunge nearly 7%, making it the worst performance on the S&P 500 , as its latest regulatory release did little to stem investor fears over the stock.

The fast food group has been beset with issues in recent years including hacking and an e-Coli outbreak, and now it has worried by talking increased marketing spend.

In its first quarter, the firm saw same-store sales rise almost 18%, the first increase in more than a year.

In February, it had told investors it has speeded up wait times at its outlets with a new digital rollout.

But now the firm said it expected marketing and promotional costs to rise by 0.2 to 0.3 percentage points in the current quarter, compared to the previous one, to 3.6 to 3.7% of sales

Shares fell 6.72% to $428.05.

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