Chipotle's stock tumbles to pace S&P 500 decliners after reports of downbeat sales outlook

Shares of Chipotle Mexican Grill Inc. tumbled 5.7% in active morning trade Tuesday, enough to make them the biggest decliners in the S&P 500 , after reports that the fast-casual restaurant chain provided a downbeat sales outlook. Volume spiked to 1.6 million shares, which is already above the full-day average of 1.4 million shares. Speaking at the Barclays "Eat, Sleep, Play--It's Not All Discretionary" conference, Chipotle management said it was nervous about meeting sales guidance, as sales haven't recovered as much as expected, according to tweets from Bloomberg reporter Shelly Banjo. The company also said it would need to raise prices to cover minimum wage increases. Bloomberg also reported that co-Chief Executive Steve Ells wasn't happy with customer service at its restaurants as lines have slowed down. The comments come as Chipotle struggles to recover from a sales decline in the wake of an E. coli outbreak at its restaurants last year. The stock has tumbled 22% year to date, while the S&P 500 has gained 7.8%.

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