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Chipotle Mexican Grill, Inc (CMG) Stock Tumbles As Company Dims Sales Outlook
The E. coli outbreak linked to Chipotle had a wider extent than previously thought, health officials from the Centers of Disease Control and Prevention said on Friday. Most infected people get diarrhea and abdominal cramps. (NYSE:CMG) news were published by: Thestreet.com which released: “Chipotle Mexican Grill (CMG) Stock Falls as CDC Reports Seven New E. Coli Cases” on December 04, 2015, also Etfdailynews.com with their article: “Chipotle Mexican Grill, Inc”.
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Shares fell 7% in after-hours trading when the chain said that 4th quarter sales are expected to fall at least 8%. That was up from the six states and 45 illnesses as of late November. Forty-seven of the 52 people who contracted E. coli have said that they ate at Chipotle before becoming sick.
The additional places where cases of infection were reported include Illinois, Maryland and Pennsylvania. Investigators suspect a fresh produce item that was shipped from one location to multiple restaurants.
The company is now scrambling to tighten up its procedures for guaranteeing the safety of its food as investigators continue to dig into what caused the outbreak.
Chipotle said Friday it tested ingredients before, but that it is moving to testing smaller batches and a larger number of samples. The process is akin to looking for a needle in a haystack, but they’re working towards finding the source of the problem.
It said that no ingredients that are likely to have been connected to the incident remain in its restaurants or supply system. The company noted that its local produce program accounts for a “relatively small percentage” of the produce it uses.
Chris Arnold, a spokesman for Chipotle Mexican Grill Inc., said the company’s local produce suppliers may not all be able to meet the new standards.
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Chipotle also discussed some of the new measures it’s undertaken to improve safety and quality, including more extensive food testing and improved training. The incidence of E. coli has been increasing recently, which has become cause for concern for many Americans.