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Actionable news in CMG: CHIPOTLE MEXICAN GRILL Inc,

No holy guacamole: Chipotle sinks on weak outlook

5 Stunning stats about Chipotle

Good news for Chipotle: Customers have come back following the chain's E.coli nightmare a few years ago. Bad news for Chipotle: Higher marketing costs and surging avocado prices may eat into its profits.

Shares of Chipotle (CMG) tumbled 6% Tuesday -- making it the worst performer in the S&P 500 -- after it said in a regulatory filing that operating costs in the second quarter would be higher than originally expected and potentially up from the first quarter as well.

Chipotle said specifically that an increase in marketing and promotional expenses was the main reason for the higher costs.

That's why Wall Street is worried. Instinet analyst Mark Kalinowski cut his earnings forecast and price target for Chipotle by 6% Tuesday following Chipotle's new outlook.

But Chipotle, which launched a major national ad campaign...


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