>> Growth stock Chipotle is saying it's slowing down its store expansion in order to get fundamentals right. I'm Peter Henderson, Reuter's San Francisco Bureau Chief. Chipotle today reported disappointing earnings, they didn't manage to hit sales or earnings targets. Partly they said that was because hurricanes came in and it closed stores, and they had to pay a big chunk of change for a security instant.
But what really concerned a lot of investors is that Chipotle is slowing down its expansion. Now Chipotle has had its troubles over the years, especially with food safety. It's been expanding, expanding, expanding. Now it's slowing down. At the same time it's planning to raise prices in a lot of stores in November, about a five percent rise.
The question is, can it do so at the same time as it's having other issues? The restaurant has the largest short sellers position of any restaurant stock, and after shares went down about ten percent in after hours trade on Tuesday. One voice the market we'll be rushing for on Wednesday is Bill Ackman, the activist investor who has taken a position in Chipotle.
One question is, does he still support the CEO? Does he think a new change of strategy is needed?