Coli outbreak December 2015: 3 more states affected
The decline of Chipotle stocks has been dramatic – falling almost 8 percent in after-hours trading. Reuters reports shares fell almost 8 percent after Chipotle estimated sales to have dropped 8 to 11 percent in the fourth quarter, a first in the company’s history.
Chipotle has taken a beating lately thanks to some E. coli outbreaks.
But the Centers for Disease Control and Prevention said in a statement that “preliminary laboratory evidence indicates that a celery and onion diced blend produced by Taylor Farms Pacific Inc. may be contaminated with E. coli O157:H7”. Forty-seven of the 52 people sickened say they ate at Chipotle before falling ill.
The breakdown of cases by state is as follows: California (3), IL (1), Maryland (1), Minnesota (2), NY (1), OH (3), OR (13), Pennsylvania (1), and Washington (27). The agency has not yet determined the ingredient responsible.
When looking at the charts for Chipotle Mexican Grill, the stock has been in a strong downtrend ever since reports of the E.Coli breakout surfaced.
“It’s important to note that, while these cases are newly reported, they are not really new, in that the exposure continues to be in the mid-October to early-November time frame, and they are just now making their way through the reporting process”, said Chipotle spokesman Chris Arnold, as reported in the Wall Street Journal.
People usually get sick from Shiga toxin-producing E. coli, the bacteria commonly associated with food-borne outbreaks, for two to eight days after swallowing the germ, according to the CDC.
Infections are caused by oral contact to fecal matter, and symptoms include abdominal cramping, diarrhea, vomiting, fever and, in rare cases, can lead to death.
The company said it was also pulling its comparable sales outlook for 2016 because of the recent sales trends and uncertainty related to the outbreak.
Chipotle announced a number of new food safety measures, including “high-resolution testing of all fresh produce to detect the presence before they’re shipped to restaurants”, and employee training for “safe food handling”, reported the WSJ.
It said that no ingredients that are likely to have been connected to the incident remain in its restaurants or supply system. The company noted that its local produce program accounts for a “relatively small percentage” of the produce it uses.
This means that there could be changes in Chipotle’s produce suppliers, who may not be able to meet the new standards.