Chipotle Mexican Grill, Inc. (NYSE: CMG) is in the red early on this morning, and for good reason. The company is no stranger to food safety issues. In fact, it was these issues that have affected the company’s sales and stock price. Nonetheless, it looks like the problem is back for the fast food chain as a restaurant was shut down after reports of people getting sick after eating there. Today, we’ll talk about:
- The store closure;
- what we’re seeing from CMG stock as a result; and
- what we’ll be watching for ahead.
CMG Shuts Down Restaurant After Making Visitors Sick
As mentioned above, Chipotle Mexican Grill is trading in the red early on this morning after the company announced that it shut one of its restaurants down via safety concerns. According to the company, at least 2 customers wrote the food safety website iwaspoisoned.com, noting that they experienced nausea and diarrhea after eating at the CMG location in Powell, Ohio.
In the notes written to the website, the consumers said that they had not visited a doctor for the ailments, but that the effects of the sickness were painful. Nonetheless, CMG said that the restaurant was closed down in an abundance of caution and that the company would be working with local health officials to reopen the restaurant as soon as possible. Here’s what a Chipotle spokeswoman had to offer:
We acted quickly and closed this single restaurant out of an abundance of caution and we are working with the local health officials to reopen this restaurant as soon as possible.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Chipotle Mexican Grill, the news proved to be overwhelmingly negative. After all, getting people sick was the reason for the massive declines we saw on the stock last year. If this becomes another outbreak, the stock could be headed down the drain. So, it’s no surprise that upset investors are sending the stock tumbling down. Of course, our partners at Trade Ideas were the first to alert us to the declines. Currently (8:20), CMG is trading at $456.00 per share after a loss of $9.47 per share or 2.04%.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CMG. In particular, we’re interested in following the story surrounding the company’s efforts to re-open the Ohio story as well as follow the details to see if this becomes a series of systemic reports as we saw last time the company struggled with food safety issues. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!