Chipotle Hit by Securities Suit for Irregular Portion Sizes (1)

Chipotle Mexican Grill Inc. allegedly misled investors over the restaurant chain’s financial health as customers earlier this year began to air their grievances about portion sizes on social media.

Chipotle’s public assurances that its portion sizes weren’t getting smaller were allegedly misleading, and revealed that it underestimated its ability to retain customer loyalty in Security and Exchange Commission-required reports, investor Michael Stradford said in his lawsuit filed Monday in the US District Court for the Central District of California.

Chipotle elected to ensure consistent servings across its restaurants, and to increase portions, but that ingredient-heavy solution hurt its profitability, Stradford ...