On July 18, 2017, Chipotle Mexican Grill (CMG) confirmed that several of its customers that consumed food at its Sterling, Virginia, restaurants reported norovirus symptoms. The reporting of another food safety issue has led to a fall in the company’s stock price.
As of July 20, 2017, Chipotle was trading at $356.05, a fall of 9.2% since the reporting of the food safety issue on July 18, 2017.
Between July 14 and July 17, 2017, there were reportedly eight cases, which were reported on iwaspoisoned.com, a website that allows customers to report on their sickness. However, the company issued a statement that norovirus cannot come from its food supply and that it’s safe to eat at Chipotle.
The outbreak hasn’t just hurt the company’s stock, but it has also severely dented Chipotle’s image of serving safe food. You can read about analysts’ 2Q17 expectations in What to Expect from Chipotle’s 2Q17 Earnings.
View more information: https://marketrealist.com/2017/07/new-food-safety-issues-driving-chipotle-stock-down/