Chipotle stock falls on potential link to salmonella outbreak in Minnesota
📰 source: cnbc_topnews · 💼 business
chipotle stock fell over 5% tuesday afternoon after bloomberg reported a potential link between the chain's jalapeños in minnesota and a salmonella outbreak. the company pulled the affected peppers from restaurants in the state and replaced them with supply from different growers. spokesperson laurie schalow said chipotle's traceability system identified the common ingredient and acted proactively.
the news hits a raw nerve. chipotle was the poster child for food safety failures between 2015 and 2018, with five separate illness outbreaks. it has since overhauled its food safety program and earned a reputation as an industry leader — but investors are clearly wary of a relapse. separately, the broader cyclospora outbreak has sickened over 6,700 people, and chipotle noted it hurt sales in late july, even though the chain serves no linked ingredients.
why it matters: past food-safety crises crushed chipotle's sales and stock; this news revives that risk for investors.
source: cnbc_topnews
sentiment: -0.50 · impact: 0.40