Share prices were down more than 4 percent Tuesday after five people in Oklahoma, Kansas and North Dakota with E. coli reported having recently eaten at Chipotle.
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According to a news release, Chipotle confirmed that three people sickened in Oklahoma ate at 765 Asp Ave.in Norman.
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CDC is investigating the new E. coli cases, but it is unknown at this time whether this current outbreak is linked to the original outbreak that sickened 53 people and caused the burrito chain to close more than 50 locations in Western United States.
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In its annual report, Chipotle has said it may be at a higher risk for outbreaks of foodborne illnesses because of its “fresh produce and meats rather than frozen, and our reliance on employees cooking with traditional methods rather than automation”. “The investigation has not identified what specific food is linked to illness”. Taylor Farms officials cited that report as the all clear for their products even though FDA officials said there could have been undetected pathogens in the fresh-cut mix.
“Since this issue began, we have completed a comprehensive reassessment of our food-safety programs with an eye to finding best practices for each of the ingredients we use”, Chipotle spokesman Chris Arnold said Monday.
According to the federal agency, the most recent case related to the outbreak in this case was started on November 3, Reuters reported. The spokesperson added that “we expected that we may see additional cases”.
And some analysts have speculated that customers may abandon Chipotle in favor of rival Qdoba, which is owned by Jack in the Box, as well as other so-called fast casual chains like Panera and Zoe’s Kitchen.
Last week, Chipotle has come up with full-page ads in 61 newspapers across the nation. But it’s not clear how long it will take for the chain to regain its footing, and the company rescinded its sales outlook for 2016. “While these cases are newly reported, they are not really new, but represent a lag in reporting between state health departments and the CDC.” .
The CDC is investigating E. coli outbreaks tied to Chipotle in nine states.
JPMorgan had previously thought a downgrade would be rash, calling the recent outbreak of norovirus – which sickened more than 150 people who ate at a Boston Chipotle – a “phenomenally unlucky coincidence”.
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Chipotle’s shares have fallen 22.6 percent since end October, when the first news of food poisoning was reported. Earlier in trading, the stock hit a 52-week low of $508.10.
