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Chipotle Stock Slide Continues, E. coli Outbreak to Blame, NYSE: CMG
The breakdown of cases by state is as follows: California (3), IL (1), Maryland (1), Minnesota (2), NY (1), OH (3), OR (13), Pennsylvania (1), and Washington (27).
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The Chipotle E. Coli outbreak is not yet over! The affected consumer had eaten at more than one location in the region days before developing symptoms, the department reports.
The restaurant chain said that it is continuing to work with federal, state and local health officials to investigate the outbreak. However, he commented about the new reported E. Coli cases.
Meanwhile, Chipotle shares have taken a huge hit in the stock market, losing nearly 8 percent to $518 in extended Friday trading, after the company said that sales at established outlets may drop 8 to 11 percent year-over-year in the fourth quarter, thus marking its first such decline. That was up from the six states and 45 illnesses as of late November.
Symptoms of E. coli infections include abdominal cramps, fever, diarrhea, and vomiting, and in few cases, even death. According to Reuters, a total of 52 people have fallen ill, with 47 reporting that they ate at Chipotle immediately before. The agency has not yet determined the ingredient that made people sick. The CDC has said that a “common meal item” or ingredient is likely to blame, though the specific culprit hasn’t been identified.
Chipotle said Friday it tested ingredients before, but that it is moving to testing smaller batches and a larger number of samples.
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. The process is akin to looking for a needle in a haystack, but they’re working towards finding the source of the problem.
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The U.S. Centers for Disease Control and Prevention on Friday added seven more U.S cases, with four of those linked to Chipotle, which has been taking steps to tighten its food safety. It can no longer predict sales for coming year because of “uncertainty” associated with the E. coli incident. This program includes the process of testing the quality of food, especially the fresh produce, before sending it to their branches.