Tuesday, 23 October, 2018

Chipotle slumps 9 percent after OH outlet linked to food poisoning complaints

Another Chipotle Is Closed After Customers Complain of Getting Sick Hundreds Reportedly Get Sick At Ohio Chipotle, Restaurant Closes
Orlando Vargas | 02 August, 2018, 22:29

Chipotle plans to reopen the restaurant Tuesday, conditional on approval by the health department.

The reports came in between Sunday and Monday, and Business Insider notes they were posted to a site known as Iwaspoisoned.com.

Delaware County general health public information officer Traci Whittaker says some media have reported around 100 people were sick, but she can not confirm this. Zacks Investment Research upgraded shares of Chipotle Mexican Grill from a "hold" rating to a "buy" rating and set a $512.00 price target on the stock in a research report on Monday, July 16th.

"We acted quickly and closed this single restaurant out of an abundance of caution yesterday".

As the fast-casual restaurant chain promoted free guacamole with any entree on Tuesday, health officials began investigating hundreds of illness claims by people who ate at one of the chain's restaurants in Powell, Ohio.

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A spokeswoman for the Delaware General Health District said the agency is in the "infancy" stages of its investigation. Business Insider reported late-Monday that more than 170 people said they fell ill after eating at a restaurant in OH. Comparatively, Chipotle Mexican Grill has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. The company told health officials that two to five staff members called off work due to illness on July 29 and 30.

"In most situations this would be a horrifying kiss of death, but with Chipotle it is baked into the brand's story", said Eric Schiffer, CEO at Reputation Management Consultants.

Chipotle confirmed that the restaurant in question reopened Tuesday after being shuttered the prior day.

In 2016, Chipotle was forced to shutter about 2,000 locations and carry out a food-safety training program.

The latest round of negative headlines comes amid renewed optimism on Wall Street that the chain can mount a comeback under Chief Executive Officer Brian Niccol, the Taco Bell veteran who took over in March.

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