Chipotle Shares Decline on Food Safety Concerns

Chipotle Mexican Grill shares declined again during the recent trading session after reports of another food safety issue has surfaced. Investigations held in Los Angeles revealed an illness outbreak which may have been caused by the food-safety measures of the fast food chain.

According to the Los Angeles Health Department’s Acute Communicable Disease Control unit that they have been made aware of reports of illness and is investigating one of the burrito chain’s Los Angeles branches following various reports of customers falling ill after dining in the said branches.

While Chipotle has not commented on the reports yet, shares of Chipotle were down by almost 3% before ending 2.5% lower during the recent trading session at $305.25. Public health officials in the area also has not confirmed the incidents and how it has led to an outbreak of a foodborne illness. 

Back in July this year, the shares of Chipotle Mexican Grill suffered following an issue regarding the norovirus being spread in one of the branches of the company in Virginia where customers who ate in the said branch tested positive for norovirus.

CMG shares then which were already suffering for the past two years following the massive e. Coli outbreak back in 2015 which led to huge losses being incurred by the company that was followed by other food safety concerns, claims of unfair employee treatment, and accusations of salary cheating from the company.

Despite the company’s growth outlook seemingly turning around at the beginning of the year, the norovirus incident sent Chipotle shares plunging mid-year. A couple of months later, Chipotle shares then suffered further following the negative reception of the public regarding Chipotle’s recent efforts in expanding its menu as well as the outlook of investing firms regarding the growth of the company in terms of earnings as well as its stock price recovery rating.

By the end of August, Chipotle shares have hit a four-year low after Deutsche Bank lowered its rating on the stock’s price target by 19% to $250. According to the bank, the restaurant chain company has faced a lot of pressure during the past two years although some are still hoping that the stock might regain balance again.

Chipotle has since then been speculated to be having a much harder time in recovering and meeting customer expectations in the upcoming quarters. Despite this, some have stated that they are hoping to see the stock regain its balance and recover once again.

HQBroker is here to give you a daily news roundup about the forex, commodities, technologies, automobiles, and economies. You can open an account now and make yourself updated with essential news in the market.