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Chipotle Mexican Grill, Inc. (CMG) Upgraded to Strong-Buy at Vetr Inc
As long as new E. coli cases linked to Chipotle keep popping up, the chain’s estimated recovery time will continue to stretch further into the future.
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The Centers for Disease Control and Prevention said five people were hospitalized and two developed a type of kidney failure, a severe complication from infection with this particular strain of E. coli, known as E. coli O157:H7.
The seven-state E. coli outbreak linked to Costco’s chicken salad is over, with officials still unable to determine the root cause. Chipotle founder and co-CEO Steve Ells went on NBC’s Today to publicly apologize for the scares and promote Chipotle’s reinvigorated commitment to food safety. Finally, Sterne Agee CRT lowered Chipotle Mexican Grill from a buy rating to a neutral rating and set a $766.00 price target on the stock.in a research report on Monday, November 23rd. Their illnesses are thought to be caused by norovirus, a contagious virus that causes inflammation of the stomach and intestines.
All microbial testing performed by Chipotle, including more than 2,500 samples of ingredients, restaurant surfaces and equipment, did not yield E. coli, the FDA said. The spokesperson added that “we expected that we may see additional cases”. Spokesman Chris Arnold said in an email Monday that the chain is in the process of implementing its new programs, which include increased testing of ingredients and food safety training for workers.
Illnesses began on dates ranging from October 6 to November 3. With all of these programs in place, we are confident that we can achieve a level of food safety risk that is near zero.
Sales growth was already starting to slow at Chipotle before the E. coli news.
Kansas Department of Health and Environment spokeswoman Sara Belfry said Monday the Kansas resident ate at a Chipotle location in Shawnee, 11805 Shawnee Mission Parkway, the week of November 23.
Earlier this month, the Mexican fast casual food chain said same store sales will drop 8% to 11% for the 2015 fourth quarter.
After Chipotle was linked to the E. coli contagion in October, it temporarily shut down locations in Washington state and Oregon. Jennison Associates now owns 1,061,894 shares of the company’s stock valued at $764,829,000 after buying an additional 92,178 shares during the last quarter.
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After being forced to close its doors earlier this year due to an outbreak of E.coli, it seems Chipotle is back in the headlines for an outbreak.