New cases of E.coli at Chipotle

So, it sounds like the CDC has not definitively concluded that Chipotle still has problems.

But Chipotle also continued to stress that “we are confident that we can achieve a level of food safety risk that is near zero”.

The new cases prompted a downgrade of Chipotle shares to neutral from overweight at J.P. Morgan on Tuesday.

The CDC released information about the new illnesses as part of an update on the wider outbreak. Following the news, JPMorgan downgraded the company’s stock from Overweight to Neutral, and revised down its target price from $630 to $555. I mean, that might just be the truth of the matter. The cause of the E. coli contagion still hasn’t been found.

A Johnson County resident is the latest person to fall ill with an E. coli infection that may be linked to Chipotle Mexican Grill.

“The epidemiologic evidence available at this time suggests that a common meal item or ingredient served at Chipotle Mexican Grill restaurants in several states is a likely source of this outbreak”, said the CDC in a statement.

Chipotle co-CEO Steve Ells has told The Associated Press he doesn’t think the company will ever know for sure the exact ingredient that sickened customers in the larger outbreak, but that he believes it was bacteria in fresh food like tomatoes or cilantro. Six days later, Taylor Farms Pacific voluntarily recalled the celery and onion diced blend used in the Costco chicken salad and many other products containing celery, because they might be contaminated with E. coli. The CDC reported the latest of these cases on Monday, an individual from Pennsylvania who became ill in early November.

As a result, Ivankoe recommended that investors stay away from Chipotle until its food issues are completely contained and analyst estimates stop dropping. The company’s strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income and notable return on equity.

Chipotle announced it would revise its standards after reports of illnesses, with measures like high-resolution testing of ingredients, end of shelf-life testing of ingredients, continuous improvement in the supply system based on testing data and enhanced food safety training for team members.

According to the federal agency, the most recent case related to the outbreak in this case was started on November 3, Reuters reported.