Sweetgreen Inc. SG said it is renaming a new menu item to resolve a lawsuit from Chipotle Mexican Grill Inc. CMG that accused the salad-focused chain of copying Chipotle’s popular burrito bowls. The Sweetgreen item in question — initially named the Chipotle Chicken Burrito Bowl — will be renamed the Chicken + Chipotle Pepper Bowl as part of a tentative agreement to resolve the lawsuit, a Sweetgreen representative said, adding: “We are looking forward to putting this lawsuit behind us as we continue to connect more people to real food.” Similarly, Chipotle, in a statement, said: “We are pleased that Sweetgreen has chosen to amend their materials in a manner that protects our trademarks and intellectual property, and therefore, we have both agreed to resolve the pending lawsuit.” The lawsuit, which sent Sweetgreen’s stock lower on Wednesday, alleged that Sweetgreen’s burrito bowl amounted to trademark infringement, and appropriated Chipotle’s branding and used similar ingredients. Shares of Sweetgreen were up 7.3% on Thursday. Chipotle stock dipped 0.5%.
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