Shares of Chipotle Mexican Grill (CMG) are sliding following a media report saying public health officials are investigating a potential illness outbreak tied to a Los Angeles restaurant. The investigation comes after customers complained of vomiting and diarrhea.
POSSIBLE ILLNESS OUTBREAK: According to a report by Business Insider, public health officials are investigating a possible illness outbreak tied to yet another Chipotle restaurant. The Los Angeles Health Department’s Acute Communicable Disease Control unit said it “is aware of reports of illness and is investigating,” the publication noted. While Chipotle has also confirmed that it is aware of the reports tied to its Pico Boulevard location, the company said it had not heard from any customers directly, Business Insider added. “As a precautionary measure, we have implemented heightened sanitization measures at this restaurant, which we do as a matter of policy if ever we receive reports of illness – even if they are not substantiated,” said Chris Arnold, a Chipotle spokesman.
WHAT’S NOTABLE: On November 29, Chipotle announced it had begun to search for a new chief executive officer. Once the search is compete, Chipotle founder Steve Ells said he will focus primarily on innovation. Chipotle has faced several foodborne illness outbreaks since 2015.
PRICE ACTION: In afternoon trading, Chipotle has dropped almost 3% to about $305 per share.
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