Shares in Chipotle, which slid 5 percent before paring losses, were down 3 percent at $548.13.
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The Department of Health, along with the Centers for Disease Control and the U.S. Food and Drug Administration, is continuing to investigate the source of the outbreak. Robert W. Baird lowered Chipotle Mexican Grill from an “outperform” rating to a “neutral” rating and dropped their target price for the stock from $850.00 to $675.00 in a research report on Friday, November 6th.
Of the three most recent illnesses reported in November, only one person, who became sick on Nov. 10, reported eating at one of the burrito chain’s outlets in the week before becoming ill, the CDC said.
Two of the latest cases date to October and the rest are from early November.
Chipotle Mexican Grill Inc. said Friday that it will conduct DNA-based tests to ensure the quality and safety of all produce as health officials increased the number of consumers sickened in an ongoing E. coli outbreak.
Of the 52 people sickened, officials said 20 were hospitalized.
The source of the outbreak is still unknown.
Chipotle announced on Friday that it would start implementing new food safety practices after consulting with experts.
The bacterial illness exhibits symptoms like nausea, vomiting, diarrhea and abdominal cramps.
The outbreak was first detected just over a month ago in Washington and OR, which still account for most of the cases. Sterne Agee CRT downgraded CMG stock in a recent report from November 23 to “Neutral” rating.
The specific food item being linked to these illnesses has still not been determined, and the investigation is continuing, according to CDC.
People usually get sick from Shiga toxin-producing E. coli, the bacteria commonly associated with foodborne outbreaks, for two to eight days after swallowing the germ, according to the CDC.
In its annual report, Chipotle noted that its business model may make it more vulnerable to food-borne illness.
Dozens of people have already been affected by the outbreak, which prompted the company to temporarily close 43 locations.
Chipotle (CMG) has prided itself on buying ingredients from small local suppliers, but the food-safety move reflects a practical acknowledgment that food-safety challenges are making it more hard.
It also added that ingredients likely to have been connected to E. coli are no longer in Chipotle’s restaurants or supply system.
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“At this point no cause has been established between this issue and any ingredient”, the company said on its website.
