Chipotle Mexican Grill, Inc (CMG) Stock Tumbles As Company Dims Sales Outlook

Shares slid more than 7 percent in after-market trading.

Federal officials say the bacteria outbreak linked to the restaurant chain now has 52 cases in nine states.

Though the investigations are still going on to find out which specific food is linked to illness, but CDC epidemiologist, who is leading the investigation revealed in an interview that “probably it isn’t a meat” because numerous people who were infected by food poisoning were vegetarians.

Chipotle said it has been tightening its food safety procedures. Some states already included in the list released by government investors included California, Minnesota, New York, Ohio, Oregon and Washington where cases of infection from E. coli showed up. Cases have now also been reported in California, Illinois, Maryland, Minnesota, New York, Ohio and Pennsylvania.

It can no longer predict sales for coming year because of “uncertainty” associated with the E. coli incident.

The illness was first detected just over a month ago in the Northwest, with Washington reporting 27 cases and OR 13. It said it will also enhance employee training for food safety and handling.

People should contact a health care provider if they recently became ill with diarrhea after eating at Chipotle or any restaurant, officials said. Although it may be good for nutrition, experts affirm it raises the risk of foodborne illness, since cooking kills pathogens that cause illness, according to a Reuters’s report.

Until now, after all the effort exerted by different agencies, it has not yet been confirmed as to what ingredient is the source of this outbreak. Its shares have dropped 25 percent since mid-October.

The CDC says the most recent sick individual fell ill in mid-November.

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.

Chipotle will work with Seattle-based IEH Laboratories and Consulting Group, unveiled a new safety program that includes improving its supply chain and doing DNA testing of produce. 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.