The road to recovery is looking longer than ever for Chipotle Mexican Grill. Wedbush Securities downgraded the restaurant chain's stock on Tuesday, sending shares in the fast-casual chain down more than 4 percent during midday trading.
The investment firm said that Chipotle will not recover its sales loss from the norovirus, salmonella and E. coli outbreaks it suffered in the last year until 2018 — and they believe that's the best-case scenario.
"Based on our belief that current valuation reflects an overly optimistic outlook regarding Chipotle's path to recovery, we downgrade shares to underperform from neutral," the team wrote in a research note.
Wedbush analysts also said that there is no reason for investors to own shares in the fast-casual restaurant as "unit economics may not rebound even if sales do." It cut Chipotle's target stock price to $400 from $450.
Chipotle did not immediately respond to CNBC's call for comment.