More problems for Chipotle

Shares of Chipotle Mexican Grill plunged 12% this Friday after the CDC warned that an E. coli outbreak at Chipotle appears to be linked to food at the popular burrito chain has now been reported in six states.
Chipotle (CMG) had just recently reopened 43 restaurants in Seattle and Portland after the CDC first identified the outbreak in late October.

The CDC said Friday that there are now more cases in the states of California, Minnesota, Ohio and New York as well as Oregon and Washington.
Chipotle said in a statement Friday that it is working closely with state and federal health officials and noted that there have been no new reported cases of E. coli in Washington or Oregon.
“Investigators have suggested that in incidents like this, it is not unusual to see additional cases after the initial incident as the investigation moves forward,” Chipotle said, adding that the source of the problem appears to have been “contained.”
According to the statement from Chipotle, the CDC stated it that five people who tested positive for the same E. coli strain found in the Pacific Northwest reported eating at Chipotle restaurants
Two were in Turlock, Calif., one in Akron, Ohio, one in Amherst, NY, and one in Burnsville, Minn.
Chipotle said it is taking immediate action at these restaurants, including deep cleaning, replacing ingredients, changing food preparation procedures and giving investigators necessary supply chain data and surveying employees.

Still, this isn’t looking good for Chipotle.

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