E. Coli continues to sicken Chipotle Customers, Stock Tracking Lower

E. Coli continues to sicken Chipotle Customers, Stock Tracking Lower

E. coli outbreak is not going to leave Chipotle Mexican Grill anytime soon. A second outbreak with different strain has sickened five of the restaurant chain’s customers. Amid sickening people, shares of the company are also sinking.

The Centers for Disease Control and Prevention (CDC) announced Monday that it has started investigating second outbreak linked to the Denver-based chain which has sickened five people. As the outbreak continues, Chipotle’s stock is ailing dramatically. On Tuesday, its shares fell more than 5% to about $495.62, lowest in last 23 months.

In a research note on Tuesday, JPMorgan’s John Ivankoe wrote that people have reasons why they should avoid Chipotle for some more days. The analyst downgraded the restaurant chain to neutral and said that the losses to the company will be 8% to 11% decline in fourth quarter. Ivankoe even said that it will be uncomfortable to suggest people buy Chipotle’s stock.

Ivankoe isn’t the only one who has negative view on Chipotle. Two other analysts have joined Ivankoe and give negative remarks to the chain. Sterne Agee’s Lynne Collier lowered rating on Chipotle in previous month’s research note. The analyst gave neutral rating. John Staszak, an analyst at Argus Research also took rating down to hold.

Shares of Chipotle have fallen about 30% since August. There are reports that if Wall Street analysts continue to give negative remarks, the company’s share price will continue to decline.


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