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60 reported illness after visiting Sterling Chipotle
30 Julio 2017, 11:38 | Azura Castelo
Chipotle in Sterling Virginia closed when customers reported illnesses consistent with norovirus
(NYSE:CMG) had its price objective decreased by Barclays PLC from $415.00 to $400.00 in a research note published on Wednesday.
While the company stated that the reported outbreak is isolated to one location in Sterling, Virginia, the news is similar to previous reports of food poisoning that had occurred years ago and had hospitalized many.
The restaurant in Sterling was temporarily closed this week for cleaning after customers reported symptoms that Chipotle said were consistent with norovirus. As of July 20, 2017, Chipotle was trading at 35.3x compared to 38.1x before the food safety reports on July 18, 2017. It's a highly contagious disease that may have been contracted through a Chipotle employee who had it. ValuEngine raised Chipotle Mexican Grill from a "sell" rating to a "hold" rating in a report on Friday, June 2nd. Chipotle hired Marsden to oversee its food-safety efforts in 2016. "Furthermore, Chipotle may need to invest more resources in preventing future outbreaks while the ability to take menu pricing is delayed following this latest outbreak". Norovirus, Salmonella, and E. coli were all involved in the outbreaks.
In a statement obtained by Fox News, Chipotle acknowledged the rat problem and outlined the steps it is taking to fix it.
Chipotle did not respond to requests when messages were left for comments, by the media.
"While the restaurant was closed, multiple teams performed complete sanitizations of all surfaces", Ells said. Customers are posting pictures of recipes to prove they ate at the Sterling store. Asset Management One Co. It's awful crisis management.
The company's CEO, Steve Ells, also released a separate statement apologizing for the incident. If the stock continues to decline, that call is likely to gain support. Stock traders bought 25,703 put options on the company. Ultimately, the long-term effect will depend on the customer response. But the company has previously said that given its history, any food safety incidents could have an outsized negative impact on its sales, even if reports turn out to be erroneous or stem from factors outside its control.
As an investor, my biggest concern isn't the norovirus outbreak itself, but the failure to address it.
A total of 133 people reported feeling sick after dining at the location on IWasPoisoned.com, though Chris Arnold, a spokesman for Chipotle, toldBloomberg that seeing as such data was "user-generated", there was "no medical or clinical verification" to confirm it. It's attitude was often aloof rather than apologetic.
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