Coli outbreak linked to Chipotle expands

Of the three most recent illnesses reported in November, only one ill person reported eating at Chipotle in the week before their illness began on November 10, said the CDC.

The Denver-based company announced on Friday it would start tightening their food safety practices now that they have consulted with experts.

According to the Centres For Disease Control and Prevention seven additional people were sickened including in three more states. OTR Global cut shares of Chipotle Mexican Grill to a “positive” rating in a report on Wednesday, October 14th.

For its fourth quarter, the company estimates earnings per share in the range of $2.45 to $2.85, while analysts polled by Thomson Reuters expect the company to earn $4.00 per share.

Infected states include Illinois, Maryland, Pennsylvania, California, Minnesota, New York, Ohio, Oregon and Washington.

Chipotle has taken a beating lately thanks to some E. coli outbreaks. To date, 52 people have become ill with E. Coli within a week of eating at a Chipotle restaurant in October and November, with 20 having been hospitalized. These are also the first two states that reported the initial cases of the outbreak.

According to the company, its shares dropped almost 8% to $518 in extended trading after the popular burrito chain warned that its sales might drop eight to 11% for the fourth quarter from a year earlier. The company added that it would implement testing of all produce before it is shipped to restaurants and enhance employee training for food safety and handling.

In addition, Chipotle said it expects to spend between $6 million and $8 million to replace food, send food samples for analysis, test restaurants and consult with advisers.

Last month, in an update on its website, CDC quoted: “The epidemiologic evidence available at this time suggests that a common meal item or ingredient served at Chipotle Mexican Grill restaurants in several states is a likely source of this outbreak”. 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.

Chipotle has been rigorously examining their products to fish for the ingredient that caused the outbreak.

Investigators said the outbreak could widen again as local agencies upload data. The company said that it had hired IEH Laboratories in Seattle to help it to improve its procedures.