Chipotle Faces Class-Action Lawsuit Over Skimpy Portion Sizes

Shareholders allege Chipotle misled investors about customer dissatisfaction, impacting stock value.

Chipotle is being sued by shareholders who claim the company understated customer dissatisfaction with inconsistent portion sizes in its financial disclosures.
The lawsuit was filed following viral social media complaints, particularly a TikTok review by food influencer Keith Lee, highlighting meager portions.
Former CEO Brian Niccol, now at Starbucks, and CFO Jack Hartung are named defendants in the case.
Wells Fargo analysis confirmed inconsistencies, with significant variability in portion sizes across Chipotle's burrito bowls.
Efforts to standardize portion sizes have increased costs, contributing to a decline in Chipotle's stock value.