The Street is expecting a dismal quarter for the company over the E.coli outbreak reported in its restaurants past year.
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The action could happen as soon as today.
In its latest E. coli update issued December 21, the CDC assured that no new Chipotle-related sickness has been reported in the past two months.
The CDC added that it “cannot say with 100% certainty that there will be no more illnesses associated with this outbreak” because the cause still has not been identified.
Other brokerage firms have also advised their investors on the company shares.Chipotle Mexican Grill, Inc. was Reiterated by Citigroup on Jan 19, 2016 to “Buy”, Lowers Price Target to $ 551 from a previous price target of $698.
ANDREW KELLY/REUTERS Chipotle’s sales have plummeted since dozens of people fell sick after eating there, but the government was expected to close its investigation of the chain on Monday.
“We are pleased that the CDC has concluded its investigation, and we have offered our full cooperation throughout”, Chris Arnold, a spokesperson for Chipotle, said in a statement provided to Mashable.
Following that 2012 decline, Chipotle spent the majority of 2013 and 2014 ripping to new all-time highs, eventually reaching 41 percent higher than its 2012 highs by the end of 2015. Bridgecreek Investment Management LLC’s holdings in Chipotle Mexican Grill were worth $4,167,000 at the end of the most recent reporting period.
The Wall Street Journal reported Sunday night that the outbreak was expected to be declared over as soon as Monday.
Since the E.coli outbreak, customers’ check-in has dropped in its restaurants.
Now, Chipotle must reassure customers that it is safe to eat at its restaurants. Neuberger Berman Group LLC boosted its stake in Chipotle Mexican Grill by 656.2% in the fourth quarter. The company had revenue of $1217.00 million for the quarter, compared to analysts expectations of $1216.88 million. Even during mid-December, several company executives claimed that there was no E. coli at its stores anymore. Sales growth also dropped over the last two months of 4Q. That was followed by a norovirus contagion at a Boston location that sickened more than 140 college students. Chipotle is planning big discounts for Super Bowl parties this weekend.
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Next week, Chipotle plans to shut down all of its restaurants to hold a food safety meeting.
