Chipotle (CMG) Stock Trims Earlier Gains as Norovirus Outbreak Grows to 141

At least 120 Boston College students who ate at a local Chipotle last weekend have been sickened in an outbreak of the highly contagious norovirus, the most common cause of food-related disease outbreaks in the U.S.

Chipotle founder and co-chief executive Steve Ells took to national television to apologize Thursday.

Boston College said Thursday the number of students reportedly showing norovirus symptoms after eating at the Cleveland Circle Chipotle restaurant has risen to 141.

The company said it thinks the Boston College illnesses are an isolated case of norovirus and unrelated to the E. coli cases.

On Thursday, the Seattle agency closed a Chipotle location because of “repeated food safety violations”.

“Since all of this began, we have completed a comprehensive reassessment of all of our food safety and handling practices … and we have begun implementing that program”.

Ells said the E. coli outbreak has pushed the company into reviewing how the 64 ingredients used in its restaurants are handled, and to look into new ways of assuring food is safe.

Chipotle is marketed as a healthy alternative to other fast food brands, but customers are beginning to believe that’s not quite true. About a decade ago, Taco Bell’s business shrank for more than a year after an E. coli outbreak, even though it rapidly fixed the problem. Telsey Advisory Group dropped their price target on shares of Chipotle Mexican Grill from $625.00 to $575.00 and set an “outperform” rating on the stock in a report on Monday.

The saga of Chipotle’s food safety woes continued today.

The ingredient that sickened people has not been identified, but Chipotle said whatever the likely culprit was is out of its restaurants. “The outbreak is also a reminder that we need to ensure that resources are not diverted away from health departments, as they fulfill a critical job in keeping us all safe and healthy”. However, the company has assured it will be able to get back on its feet, with several analysts anticipating price hikes next year to compensate for rising expenses incurred over E. Coli.

Pamela Ponce, 26, said she frequents the lower Manhattan Chipotle restaurant and always orders the burrito bowl.

In related news, Chipotle’s stock rebounded with a five per cent bump following Ells pledge for better food safety. Chris Arnold, Public Relations and Communications for Chipotle Mexican Grill, wrote in an email, “We offer our sincerest apologies to people who were impacted by this incident”. “I feel bad about that, and we’re going a lot to rectify this and make sure it doesn’t happen again”, he said. But he said he’ll be doing some research on Chipotle when he gets home.