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Coli Outbreak, Chipotle Mexican Grill’s Shares Drop 8%

Sales trends in Q4 “so far have been extremely volatile” with November comparable restaurant sales down 16%, the company said.

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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. Investigators examining the outbreak connected to the fast-food burrito chain have seen cases in nine states, with Pennsylvania, Maryland, and IL added to a group that was already comprised of California, Minnesota, New York, Ohio, Oregon, and Washington. Considering the fact that the illnesses actually occurred between mid October and early November, it is not a surprise that the reports are just on the process of making their way through. As of November 10, 2015, it operated approximately 1,900 restaurants, including 17 Chipotle restaurants outside the United States and 11 ShopHouse Southeast Asian Kitchen restaurants.

Of the 52 people infected, the CDC says 47 reported eating at a Chipotle Mexican Grill in the week before the illness started.

Chipotle said this week that an outbreak of E. coli linked to its restaurants sent sales plummeting by as much as 22 percent in recent weeks and that it could no longer reasonably estimate sales for next year.

Chipotle and other restaurants have put greater focus on fresh, unprocessed food.

Most infected people get diarrhea and abdominal cramps. Investigators suspect a fresh produce item that was shipped from one location to multiple restaurants.

Chipotle spokesman Chris Arnold said in an email that “none of the ingredients that were in our restaurants at the time of this incident are still in our restaurants”. The company noted that its local produce program accounts for a “relatively small percentage” of the produce it uses, and only runs from around June through October in most parts of the country.

“In testing for pathogens, in many ways you’re looking for needles in haystacks”.

Chipotle, which is known for touting the quality of its ingredients, also said Friday it was tightening its food standards.

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The e. Coli outbreak at Chipotle restaurants has expanded to nine states