Chipotle Has a Perception Problem, Not a Food Safety Problem
Just when it appeared Chipotle (NYSE: CMG) had begun winning back the customers it lost after a series of food safety problems at its restaurants, the company had to close a Virginia store last week due to an outbreak of norovirus. The incident, which reportedly caused at least 13 customers to get sick, led the company to close the restaurant for a "deep cleaning." Chipotle has since reopened the location and no other restaurants in the chain were impacted.
Unlike the 2015 incidents, some of which were food-supply related, this latest issue was likely caused by a sick employee or customer. Norovirus is the leading cause of illness and outbreaks from contaminated food in the United States, according to the national Centers for Disease Control and Prevention.
The news halted the Mexican chain's slowly building stock rally. Shares in the company closed at $395.83 on July 14, the Friday before the incident. They fell throughout the following week to close July 21 at $356.05, a 10% drop.
Source: Fool.com
Chipotle Mexican Grill Inc. Stock
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