News

Chipotle sales, stock still falling

Chipotle's stock is trading below $500 and is down 28 percent over the year.

December 29, 2015

Chipotle's stock is trading below $500 and is down 28 percent over the year, due to therecent E. coli breakouts reported across several states, according to an  article published today in Business Finance News.

The Centers for Disease Control has been investigating the outbreaks since October when the first incident was reported in the Pacific Northwest; there are now 53 cases across nine states.

The company has lost around $7 billion since October 13, because of sales declines. Chipotle expects same-store sales to drop 8 to 10 percent over the holiday season, according to the article.

October same-store sales growth was reported in low-single-digit as the nearly 40 store closures drove a 16 percent decline in November sales growth, the company said.

In hopes of controlling the public's fear, Chipotle announced last month it would revise its food-safety standards, and Co CEO Steve Ells issued a public apology two weeks ago on the "Today" show, pledging to ensure top safety procedures.