Everyone expected that Chipotle's results would be bad, and they were with the company missing revenue expectations of $1.01 billion with $997.5 million in sales, on $2.17 in EPS. But what has drawn everyone's attention in the company's just announced quarter is that following the previously announced criminal investigation for serving e.Coli tainted food,on January 28 it received yet another, new criminal investigation, one which broadens the scope of the previous one.
On January 28, 2016, Chipotle was served with a subpoena broadening the scope of the previously-announced criminal investigation by the U.S. Attorney’s office for the Central District of California. The new subpoena requires us to produce documents and information related to company-wide food safety matters dating back to January 1, 2013, and supersedes the subpoena served in December 2015 that was limited to a single Chipotle restaurant in Simi Valley, California. We intend to fully cooperate in the investigation.
For now the stock appears to be doing its best to, well, hold it in...