Categories LATEST, Retail

Food safety scandals continue to haunt Chipotle

Chipotle (CMG) was still recovering from a string of food safety lapses that occurred in 2015. The prolonged crisis had badly damaged the company’s reputation. Both sales and stock price have been battered since then. Apparently, the problem is back again as the company has temporarily closed down its Ohio restaurant after its customers fell ill. This news sent the stock plummeting in the after-hours trading on Monday. The downward momentum continued on Tuesday and the stock slid more than 6% in the morning trading session.

This year when the fast-food chain hired CEO Brian Niccol, the company shares shot high as investors were optimistic about a turnaround at Chipotle. During an interview with FOX Business on Monday, Niccol said Chipotle is looking to put food-borne illness scare behind them. But this latest episode of food scare came as a nasty reminder to the investors, causing them to dump the shares.

Apparently, the problem is back again as the company has temporarily closed down its Ohio restaurant after its customers fell ill.

The initial reports made the incident appear small as just 10 complaints were received. But on Tuesday, CNBC said the Delaware General Health District received more than 100 calls and the number continued to rise. The latest health scare came from a Chipotle restaurant in Powell, Ohio where customers fell ill with symptoms like nausea and diarrhea. The company, however, plans to re-open the restaurant after it gets an approval from the health department. Chipotle could head for the worse if this new episode turns into another outbreak.

RELATED: Chipotle changes its strategy

While Chipotle was getting battered over food poisoning outbreaks, its rivals took complete advantage of the situation and increased their sales through clever marketing and menu offerings. Now Chipotle is trying to win back its customers with improved menu choices. Under the leadership of Niccol, Chipotle is set to make some much-needed strategic changes.

RELATED: Chipotle has better weightage than Shake Shack

But as of now, the industry watchers might be more interested in the company’s plan to reopen its Ohio restaurant. It’s worth noting that on July 27, Chipotle shares reached a new 52-week high ($483.29) and now the stock has plunged more than 11% from that.

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Comments

  1. Pingback: male stroker
  2. Pingback: Glock 19
  3. Pingback: learn more
  4. Pingback: Real krt
  5. Pingback: junk cars
  6. Pingback: BERETTA 92X
  7. Pingback: Marijuana Delivery
  8. Pingback: best cock sleeve
  9. Pingback: stocks 101
  10. Pingback: zwitsal
  11. Pingback: Google
  12. Pingback: cashforcars-bc.com
  13. Pingback: buy backlinks
  14. Pingback: listen here
  15. Pingback: Haupia strain
  16. Pingback: Bubble hash
  17. Pingback: Moroccan hash
  18. Pingback: Litto
  19. Pingback: Bubble hash
  20. Pingback: 2forswear
  21. Pingback: University of Embu
  22. Pingback: MUT
  23. Pingback: ABCD 1
  24. Pingback: slots casino
  25. Pingback: linuxappfinder
  26. Pingback: bandar slot88
  27. Pingback: HaanGlas VIG
  28. Pingback: indobet slot
  29. Pingback: Biofit reviews
  30. Pingback: 해외선물 뜻
  31. Pingback: tại vn88
  32. Pingback: Diploma Programmes
  33. Pingback: TVET programmes
  34. Pingback: Short Courses

Comments are closed.

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top