The last few months have been terrible for Chipotle. In the latest market report, the famous Mexican grill that offers non-GMO food like burritos has taken a tumble with stock shares closing at $539.20, a huge drop from the $614.70 on Friday, Nov 20. The 52-week low is $534.20.
A huge reason for the drop in shares is the link between Chipotle and the growing E. coli outbreak that has already spread in more than five states and affecting over 40 people who had been sick. Around 16 of them were hospitalized, although there have been no reported deaths.
The federal health authorities have confirmed on Friday that the outbreak has already spread to New York, Minnesota, and Ohio. There are also reported cases in California.
Early in September, a norovirus outbreak had been linked to a Chipotle branch that's located in Southern California. At least 80 people, including 15 of its employees, were believed to have been affected by the virus. Meanwhile, Chipotle was forced to close 43 of its restaurants in both Oregon and Washington due to E coli. The operators have already opened them last week after they cited the measures they have undertaken to encourage health safety for both employees and customers. They have already replaced their food and have thoroughly cleaned their appliances and surfaces. The company has also tapped professional consultants who can advise them on food safety and has updated their food preparation methods.
Chris Arnold, Chipotle's spokesperson, however, clarified that they are not planning to close the restaurants found in the other affected states due to the timing of the visit of the customers and the onset of the illness.
The health authorities are still expecting that more will come forward and be diagnosed with the illness. They are also still working in determining the culprit.
Although E. coli infection can have only minimal effect on healthy adults, it can be harmful on older people, children, and those with low immune system.
