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Chipotle temporarily closes 43 stores amid E coli outbreak
31, 19 cases of E. coli, including seven hospitalizations, were reported in Washington, and three cases, including one hospitalization, were reported in Oregon.
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Chipotle fell as low as $592.86 in early trading on Monday.
Food safety sleuths in Oregon and Washington worked with Chipotle and federal health officials on Monday, following threads of an E. coli outbreak that emerged over the weekend and has sickened at least 23 people.
“Most every chain restaurant is vulnerable to the outbreak of food-borne pathogens, and Chipotle is not immune”, Bob Derrington, an analyst at Telsey Advisory Group, said in a research note.
If the restaurants remain shuttered through year-end, the closures could reduce fourth-quarter sales at established restaurants by 1.7 percent and potentially reduce quarterly earnings by 11 cents per share, Andrew Charles, an analyst at Cowen and Co, said in a client note.
While the exact source of the contamination in the latest outbreak hasn’t yet been identified, a few food-safety experts say the two episodes point up the challenges facing purveyors of fresh food like Chipotle, which has cultivated a loyal following based on its use of preservative-free, locally grown fare. “We offer our deepest sympathies to those who have been affected by this situation”.
According to Seattle King County Health, a total of five Chipotle customers were stricken last summer; two people were hospitalized. No deaths had been reported, but nine people were hospitalized.
There are hundreds of E. coli and similar bacteria strains in the intestines of humans.
In the Northwest outbreak, the investigation started with talking to everyone diagnosed with E. coli and finding out what they ate and where.
Symptoms include bloody diarrhea, stomach cramps, vomiting, and fever.
“Anyone who thinks they may have become ill from eating at a Chipotle restaurant in the past three weeks should consult their healthcare provider”. Immediately following reports of salmonella, all Chipotle restaurants in Minnesota swapped out the offending tomatoes to those from a different supplier, but did not close. “They should have a statement on their website even though it does run counter to their wholesome and beautiful-looking food image; this is a serious health issue and people could die or get seriously ill”. And in California, norovirus sickened almost 100 customers and employees at a Simi Valley restaurant in mid-August, according to state health officials.
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“We believe that a food item is probably the cause of these infections“, said D’Angeli.