Chipotle shares jump as CEO apologises over illnesses, vows change

The remarks came after more than 140 Boston College students have been diagnosed with norovirus after eating in Chipotle restaurants.

The Massachusetts Department of Public Health has told the college there have been no other pathogens found in lab tests; however, some specimens still need to be tested, according to school officials.

“It has caused us to put in place practices that our epidemiologist says will put us 10 to 15 years ahead of industry norms and I believe this will be the safest restaurant to eat at”. Before reopening the restaurant in Boston, Arnold said all the employees are being tested for norovirus, and that they will not return to work until they are cleared.

“The Health Services staff remains hopeful that the norovirus will be contained in light of their efforts to inform students of guidelines to avoid spreading the illness”, Dunn said in a statement. The controversy first emerged when health authorities first reported victims tied to veggie meals at a Chipotle outlet, marking the chain’s third food safety scandal in just three months. Symptoms include stomach pain, nausea, diarrhea, and vomiting.

Norovirus is a highly contagious virus spread by contaminated food, improper hygiene and contact with contaminated surfaces.

Chipotle Mexican Grill’s (CMG – Get Report) reputation has been tainted with reported norovirus illnesses affecting over 120 students along with an E. coli outbreak linked to the company’s restaurants. Wedbush analyst N. Setyan now forecasts that the brokerage will post earnings per share of $15.55 for the year, down from their previous estimate of $17.28. The City of Boston temporarily closed the restaurant until further notice.

Chipotle Mexican Grill Inc., based in Denver, has more than 1,900 locations, primarily in the U.S. The company has already warned that sales are expected to fall as much as 11 percent at established locations for the fourth quarter as a result of bad publicity from the E. coli cases.

Asked whether the company could recover financially, Ells said “certainly”.

“Unfortunately, Chipotle’s future was stained with an event similar to McDonald’s food-safety scandal in China previous year”.