Trying to right itself, a criminal investigation at Chipotle

This is connection with the criminal investigation launched against the norovirus cases in one of its restaurants found in Simi Valley, California, August a year ago.

The disclosure of the investigation comes as Chipotle Mexican Grill Inc. reels from E. coli outbreaks in late October and November, which were followed by the sickened customers at a restaurant in Boston in December. Chipotle closed 43 of its Pacific Northwest locations after foodborne illnesses past year sickened about two dozen people.

The emergence of a criminal investigation after a norovirus outbreak is unusual, said Bill Marler, a food safety lawyer representing Chipotle customers who were sickened in Simi Valley.

That outbreak was followed by a norovirus incident at a restaurant in Brighton, Massachusetts the week of December 7, in which 120 Boston College students fell ill.

Earlier in 2015, the company ran into trouble after suspending a pork supplier that violated its animal welfare standards. The decline, Chipotle’s first quarterly drop as a public company, was previously projected to be as much as 11 percent.

Chipotle spokesman Chris Arnold said these new testing and cooking methods will begin in the next few weeks. “It is not possible at this time to determine whether we will incur, or to reasonably estimate the amount of, any fines, penalties or further liabilities in connection with the investigation pursuant to which the subpoena was issued”, the company said. On Wednesday the company announced that it expects comparable restaurant sales to fall by about 15 percent in the fourth quarter – a 4 percent increase from what it had established before. Chipotle has acknowledged it saw sales plunge by 30 percent last month in the aftermath of the outbreaks.

Chipotle has issued full-page ads apologizing to their customers, but the once thriving company, which served burritos with a side of guilt, is now eating a slice of humble pie.

The cause of the E. coli outbreak has not yet been identified…

None other than the federal grand jury has called the attention Chipotle through a subpoena, Los Angeles Times reported on Wednesday. The company also repurchased approximately 401,000 shares of stock at an average price of $527 per share in December.

The subpoena was disclosed in a filing with the Securities and Exchange Commission. The restaurant was located in central California, but there are fears it could be elsewhere. Chipotle’s management has said that they will fully cooperate with the joint investigation.

With assistance from Leslie Patton and Andrew Harris.