Chipotle shares are tumbling after E. coli reports in 2 states
There's a health scare at Chipotle, and now the stock is sliding.
Shares fell by as much as 7% in pre-market trading on Monday following news this weekend that the Mexican-food chain closed 43 stores in Seattle and Oregon over an E. Coli scare.
The Oregon Health Authority said three people near Portland and 19 near Washington became sick after eating at Chipotle since October 14. It was investigating an outbreak of the disease.
A spokesperson told the Associated Press that the company closed its restaurants in the area "out of an abundance of caution."
As of Saturday, eight people were in hospital, and no one had died.
Chipotle makes a big deal of its ingredients, and carefully picks its suppliers to ensure that its products are fresh, and meats aren't farmed industrially.
Within the last four months, health officials in Ventura County, California, and in Minnesota, have investigated illness outbreaks linked to Chipotle.
Earlier this year, Chipotle stopped serving pork at hundreds of restaurants after some suppliers violated its standards. In the company's fourth-quarter earnings statement October 21, CEO Steve Ells said it was working to bring back carnitas to all its restaurants, and was increasing its food standards.
The stock has fallen about 6% year-to-date, and is nearly flat over the past 12 months. Google