In the retail trade, there are many elements of the reason for success of the company. People have to like what it is offered, they have to believe it is great value and they have to be repeat customers. The combination means that there is always a balancing act because people and companies like to change their offerings to keep it fresh. The raw materials can increase or decrease in prices, but usually increase and substitutions are examined. Repeat customers are the best, but every once in a while, they will try something else, hopefully coming back. When the company is public, success means most people are happy, but if the stock falls, everyone has a reason.

In an article from Reuters, the food company Chipotle Mexican Grill Inc was sued by shareholders because of growing unhappiness among customers with inconsistent portion sizes for its burritos and rice bowls. The dissatisfied shareholders say customers voiced dismay on TikTok and other social media. People take pictures of their food and post it.

CEO Scott Boatwright said the portions sizes were generous at the 3,600 restaurants.

Shareholders say the cost to repair the damage hurt margins, causing Chipotle’s stock price to fall wiping out $6.5 billion of market value. The shareholders are seeking some form of damage to purchasers in 2024.

Linking to dividend paying stocks, there is an old adage in the stock market, stocks go up and down. Sometimes the reasons are rational and sometimes they are harder to figure out. Sometimes the stock is seen as a growth stock, then it is seen as mature company and should trade at a different valuation. There are countless combinations, but stocks go up and down. One method to provide insurance is to buy profitable stocks that pay a dividend so when the stock goes up all is good, when the stock goes down there is a dividend to cushion the lower price. Generally profitable stocks trade at higher multiples so when normalcy is back in the market the profitable stocks go up first.

There are more questions than answers, till the next time – to raising questions.