Chipotle’s stock is up 4.9 percent as the Centers for Disease Control says the E. coli outbreak linked to its restaurants that sickened at least 60 people seems to finally be over.
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Customers could have a “willingness to return to the brand”, given a passage of time with no additional food issues, a yet-to-be-issued “all-clear” report from the CDC, and greater confidence that Chipotle’s changes in food handling will be effective.
In a statement, Chipotle said it was pleased that the investigation is over. NPD estimates that total visits fell about 5 percent in the fourth quarter, when most of the outbreaks occurred, compared with a 19 percent traffic gain in the same quarter a year ago. Fortunately, no cases of kidney failure or deaths were reported in either outbreak.
The PulseNet database discovered two different, rare DNA fingerprints of Shiga toxin-producing E. coli O26 (STEC O26), and whole genome sequencing (WSG) revealed more detailed information about the DNA of those two bacterial strains.
A month later, 141 Boston College students were reported to have contracted norovirus after eating at a Chipotle in Brighton, Mass.
Chipotle said last month it was confident that it has taken steps meant to increase food safety. The agency cited December 1, 2015, as the last reported illness. Factory Mutual Insurance Company acquired a new position in shares of Chipotle Mexican Grill during the fourth quarter worth about $9,597,000. The company has said same-store sales declined by 30% in December.
Chipotle executives have pledged to implement new food-safety standards and reduce the risk of future outbreaks. (NYSE:CMG) develops and operates Chipotle Mexican Grill restaurants, which serve a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. The stock had a trading volume of 2,336,586 shares.
The chain plans to close all of its USA stores for part of the day on February 8 in order to hold a meeting with employees across the nation.
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Chipotle is scheduled to report its holiday quarter earnings results on Tuesday, which should give a clearer picture of just how much damage the crisis did to the company’s sales and offer clues as to whether it expects that to continue into the next quarter.
