Shares of Chipotle Mexican Grill Inc fell more than 6 % in morning trading on Wednesday, every day following a popular burrito chain operator stated it would temporarily shut a Massachusetts restaurant after four employees fell sick.
Chipotle is attempting to fix its reputation following a quantity of food-safety incidents, including two E.Coli outbreaks that sickened about 50 individuals 10 states and two separate norovirus outbreaks in Massachusetts and California.
“We suspect that investors and consumers will likely be mindful of this announcement, specially in light from the adverse news flow in the last Six months at Chipotle,” CRT Capital analyst Lynne Collier said in note to clients.
“The publicity with this particular news announcement will probably be another negative data-point that could affect consumer demand.”
Chipotle’s sales have fallen sharply because the E. Coli outbreaks late last year. Sales within the quarter ended Jan. 31 were down 18 percent instead of the 3rd quarter.
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The restaurant hit using the latest food scare, inside the capital of scotland- Billerica, outside Boston, was closed for just about any full cleaning, company spokesman Chris Arnold said .
The company along with the Massachusetts Department of Public Health asserted no customers maintained being sick.
“This is often under investigation by local health department,” Massachusetts DPH spokesman Scott Zoback said by email.
Chipotle didn’t immediately react to requests for comment or even more info on Wednesday.
The company temporarily closed its U.S. restaurants on Feb. 8 during prime lunchtime hours to carry staff meetings on food safety.
Up to Tuesday’s close of US$524.69, the company’s stock had fallen about 18 percent since the first E.coli outbreak was reported on Oct. 31.
? Thomson Reuters 2016
