Chipotle reopens OH eatery possibly linked to illnesses

02 August, 2018, 22:31 | Author: Corey Lynch
  • Chipotle signage

"The local health department has informed us of two customer complaints of illness at one restaurant in Powell", the company's chief communications officer, Laurie Schalow, said in a statement Tuesday.

Shares of Chipotle (NYSE: CMG) are falling hard this morning to be one of worst-performing stocks in the entire S&P 500.

Three reports covering nine individuals were posted on the crowd-sourcing website Iwaspoisoned.com between Sunday and Monday, according to Business Insider.

Dozens of people reported symptoms of illness like nausea, diarrhea, and vomit after eating at the Chipotle Mexican Grill on Sawmill Parkway in Powell. Chipotle management said it was unable to get in touch with the health department to report the illnesses. The Delaware General Health District says it can't confirm anything until lab tests are back.

As for the stock, the drop in it isn't that shocking, because Chipotle has had a big price rally in the past few months, much of which was likely fueled by short covering.




Chipotle said it planned to reopen the OH restaurant on Tuesday after it deep cleaned the restaurant and removed all exposed foods and single-use equipment, pending approval from the local health department. "We are not aware of any confirmed foodborne illness cases, and we are cooperating with the local health department".

Diversified Restaurant has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Shares of the company were down 7.4 percent at $431.12, erasing gains made since Chipotle reported stronger-than-expected profit and same-restaurant sales for its second quarter on Thursday.

Last summer Chipotle retrained kitchen workers on food-safety issues after identifying a sick employee as causing a norovirus outbreak that prompted the brief closure of a restaurant in Virginia.

Chipotle's stock soared 61% this year through the market close on Monday amid optimism about the appointment of Brian Niccol, the new CEO.

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