Health officials: Norovirus present at Boston Chipotle
The Boston Public Health Commission said lab testing has confirmed the presence of the gastrointestinal illness, which causes nausea, vomiting and diarrhea, at the Chipotle restaurant in the city’s Cleveland Circle neighborhood, near the Boston College campus.
Whatever the reason for this case, Webster said the food preparation model at Chipotle raises the risk of spreading illness. Cases have been reported in Washington, Oregon, Minnesota, California, New York and Ohio. Thankfully, no deaths have been reported. But Chipotle says whatever the likely culprit was is out of its restaurants. Shares have dropped about 28 percent since the chain’s all-time high in August.
With $600 million in cash on hand, Chipotle shouldn’t have any trouble weathering this storm financially.
Despite the worries, some analysts believe the restaurant chain’s highly publicized public health problems are ephemeral, and it will be poised to bounce back to its winning ways, making the stock an excellent bargain. The Taylor Farms recall has not been linked to the Chipotle outbreaks. They also recommend requiring sick food workers to stay home.
The string of outbreaks stretches across the country. But it is by far the most common source of foodborne illness, according to the U.S. Centers for Disease Control and Prevention.
And that’s not all. In addition, and probably most importantly, the second violation states that a sick employee was working on Thursday. In addition, physical proximity to the infected can also contract the illness, as pointed out by the BPHC. According to CNBC, “nearly all” of the victims ate at Chipotle recently.
Chipotle Communications Director Chris Arnold told Patch Monday night that there is “no evidence to suggest this is E.coli” in Boston, and referred to another company statement.
All things considered, Chipotle’s EPS expectations for 2016 have fallen off a cliff over the last month. Yet, Chipotle announced that sales plunged 16% in November.
The findings appear separate from a spate of E. coli infections in recent months that has sickened 52 people in nine states and forced the company to temporarily close some locations.
After years of strong growth and accolades, Chipotle suddenly is facing the same critical challenge brand names such as Costco and Blue Bell ice cream confronted when serious questions were raised about the quality or safety of one of their products.
One reason the company may be struggling is its commitment to fresh ingredients. The company partnered with an epidemiologist to develop an enhanced food safety program. Then the chain will use full-page newspaper letters, interviews, direct mail and social media to inform customers about changes it implemented and encourage them to revisit locations.
My advice is to avoid Chipotle stock.
Chipotle’s situation could be worse.