Chipotle, Sweetgreen Spar Over New Burrito Bowl: Report

  • Chipotle Mexican Grill Inc CMG is taking Sweetgreen Inc SG to court, accusing the salad chain's item, Chipotle Chicken Burrito Bowl, infringes the former's trademark.
  • In its lawsuit filed in the U.S. district court, Chipotle claimed that Sweetgreen had used the chipotle name in capital letters, a copy of its trademarked logo.
  • The burrito chain further said it had spoken to Sweetgreen to use lowercase and had even offered other alternatives, the WSJ reported.
  • "As one example, Chipotle suggested that 'chicken bowl with chipotle' may be a more appropriate name for Sweetgreen's new menu item," the complaint said.
  • Chipotle's complaint said the ingredients of Sweetgreen's latest offering are similar to its bowls.
  • "This promotion is clearly intended to copy and trade off of Chipotle's longstanding 'National Burrito Day' promotion."
  • Sweetgreen launched Chipotle Chicken Burrito Bowl last week with blackened chicken, wild rice, black beans, tomatoes, cabbage, and roasted chipotle salsa. 
  • Price Action: CMG shares closed lower by 2.16% at $1,697.42, and SG closed lower by 6.26% at $6.89 on Wednesday.
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