Chipotle Hammered by Multiple Outbreaks of Sickened Customers

Many analysts believe that the developments is the latest bad news for Chipotle which has seen its sales plummet after the emergence of the larger E.Coli outbreak that has sickened 53 people in nine states.

“Since this issue began, we have completed a comprehensive reassessment of our food safety programs with an eye to finding best practices for each of the ingredients we use”.

He cited a customer comment on Chipotle’s website as perfectly summarizing JPMorgan’s feelings about the company now:”I’ve been so supportive lately, but just don’t know how much more of this I can take”.

The FDA conducted a traceback investigation of the FDA-regulated ingredients used in the chicken salad to try to determine which ingredient was linked to illness, but the traceback did not identify a common source of contamination, according to the CDC.

Chipotle said it would revise its standards after the initial reports of illnesses surfaced in late October and early November. Spokesman Chris Arnold said in an email Monday that the chain is in the process of implementing its new programs, which include increased testing of ingredients and training for workers.

In addition to more testing along the supply chain, Chipotle is instituting more high-tech food tracking inside its restaurants and some new procedures, including cutting, washing and testing tomatoes at central commissaries to ensure they are as clean as possible.

We’d note, however, that the CDC added, “Because it is not known if these infections are related to the larger, previously reported outbreak of STEC O26 infections, these illnesses are not being included in the case count for that outbreak”. Those points of differentiation have always been marketing strengths for Chipotle, which has sought to distinguish itself as being of higher quality than traditional fast-food chains.

Earlier this month, Boston’s Public Health Commission also received multiple reports of gastrointestinal illness from 136 people who consumed food at the city’s Chipotle restaurant, according to a statement.

The FDA said it is working with the Centers for Disease Control and Prevention (CDC) and state and local officials.

JPMorgan has downgraded Chipotle after a second outbreak of E. coli tied to its restaurants.

Chipotle’s stock dropped once again. The stock fell as low as 508.10 intraday, which was the lowest since May 2014.