Jeff Gundlach, the founder of DoubleLine Funds, added his voice to the criticism of Chipotle following a new food-safety scare.
Chipotle closed a restaurant in Sterling, Virginia, after multiple customers said they fell sick after dining there. The fast-casual chain said Tuesday that the reported symptoms were “consistent with norovirus,” bringing flashbacks of the outbreak linked to its food in Boston two years ago.
Gundlach tweeted: “Should CMG expand menu to get customers back?” Raw Egg Breakfast Burrito, anyone? Oh well, bulls have that 0% dividend going for them, anyway!”
One of those bulls is of course Bill Ackman, the activist hedge fund manager who heads Pershing Square Capital Management and took a 10% stake in Chipotle in 2016.
Gundlach, who’s sometimes described as the “bond king” on Wall Street and followed closely for his commentary on interest rates, said in 2013 in March 2017 that he was short Chipotle’s stock. It’s unclear whether his short position in the stock has changed since then. In 2015, he said the shares were “remarkably overvalued.”
Chipotle shares fell 4% in trading on Tuesday following Business Insider’s report of the illness that was posted on the website iwaspoisened.com.
Should CMG expand menu to get customers back?Raw Egg Breakfast Burrito, anyone? Oh well, bulls have that 0% dividend going for them, anyway!
— Jeffrey Gundlach (@TruthGundlach) July 18, 2017