Food safety scare knocks Chipotle shares to four-month low

November 3, 2015 03:45
1 minute read.


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Chipotle Mexican Grill Inc's shares touched their lowest level since July after the popular burrito chain said it closed 43 restaurants in the states of Washington and Oregon amid an investigation into an E. coli food poisoning outbreak.

Shares in the high-flying restaurant company touched a low of $608.52 in early trading on Monday and closed down 2.5 percent at $624 as investors and analysts fretted that food safety concerns could scare diners away from its more than 1,900 restaurants in the United States.

The outbreak is Chipotle's third food safety incident this year.

The closed restaurants, in and around Seattle and Portland, account for roughly 2 percent of Chipotle's US footprint and could lower fourth-quarter sales at established restaurants by 0.6 percent, according to a "conservative bounce-back scenario," Bernstein analyst Sara Senatore said in a research note.

"Food-borne outbreaks are not unusual for the fast food restaurant industry and the impact of previous incidences has proven fleeting for restaurants generally and Chipotle specifically," said Senatore, adding that the latest incident at Chipotle likely would increase scrutiny of its supply chain.

If the restaurants remain shuttered through year-end, the closures could reduce fourth-quarter sales at established restaurants by 1.7 percent and potentially reduce quarterly earnings by 11 cents per share, Andrew Charles, an analyst at Cowen and Co, said in a client note.

Related Content

Breaking news
July 18, 2018
Google says will appeal EU fine