Chipotle warns of sales slide as E. coli outbreak expands

Chipotle said Friday that an outbreak of E. coli linked to its restaurants sent sales plummeting by as much as 22 percent in recent weeks and that it could no longer reasonably estimate sales for next year.

A total of 52 cases have now been reported in nine states, including Maryland, said the Centers for Disease Control and Prevention (CDC). They now include Oregon, Washington, California, Minnesota, New York, Ohio, Illinois, Maryland, and Pennsylvania.

Out of the 52 patients, 47 of them confirmed eating at Chipotle restaurants. The agency has not yet determined the ingredient responsible.

Food safety is probably the most important part of running any kind of restaurant or food-related business, and Chipotle has been sloppy making sure that their customers get the best experience possible.

In regulatory filings on Friday, Chipotle said it expects fourth quarter earnings per share of $2.45 to $2.85, sharply below original expectations of $4.06.

On Nov. 26, a celery and onion mix was identified leading to an expanded recall this week of 155,000 items, including salad kits, vegetable trays and other prepared foods. The company said that it had hired IEH Laboratories in Seattle to help it to improve its procedures.

Meanwhile, the company’s shares dropped almost 8 percent to $518 this week because, as it turns out, no one wants to eat an E. coli-laced burrito.

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 has taken a beating lately thanks to some E. coli outbreaks. The process is akin to looking for a needle in a haystack, but they’re working towards finding the source of the problem.

Chris Arnold, a spokesman for Chipotle Mexican Grill Inc., said the company’s local produce suppliers may not all be able to meet the new standards. The company noted that its local produce program accounts for a “relatively small percentage” of the produce it uses.