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Chipotle Tumbles: Will Demand Customers Pay More For Food That Won't Make Them Sick

Tyler Durden's picture




 

From Ecoli to Norovirus and from average-joes to college athletes, the success of CMG has become its down fall as something ugly is growing in the healthy fast food restaurant. The latest headline is a little intriguing, as amid all the carnage, Chitptle says it will have to raise prices... as new supplier standards will hurt margins, and require "significant cost" adjustment, according to CFO Jack Hartung. We will see if poeple wil pay more not to get siuck and lose 15lbs (or prefer to pay less).

As AP reports,

Chipotle said it believes norovirus is to blame for sickening students at Boston College who reported "gastrointestinal symptoms" after eating at the chain.

 

The company says it thinks the illnesses are an isolated incident unrelated to a multi-state outbreak of E. coli cases linked to its restaurants.

 

"All of the evidence we have points in that direction," says Chipotle spokesman Chris Arnold. He noted Chipotle has no confirmation, but that the company hopes to have more information later Tuesday.

 

Chipotle said late Monday that it was temporarily closing a restaurant in Boston's Cleveland Circle after Boston College said 30 of its students, including members of the men's basketball team, complained of gastrointestinal symptoms after eating at the chain. The school said it was working with health authorities to investigate the cause.

And the stocks is fading again... Time for a bigger buyback!!!

 

Some other headlines from the company's presentation:

  • *CMG: THE E. COLI ‘EXPOSURE PERIOD’ HAS ENDED

But..

  • *CHIPOTLE: STILL HAVE NOT IDENTIFIED THE TAINTED INGREDIENT

And so

  • *CMG: E. COLI OUTBREAK HURTING EFFORTS TO DRAW NEW CUSTOMERS

Which won't be helped by this...

  • *CMG CFO: CO. MAY HAVE TO RAISE PRICES TO COPE WITH NEW COSTS

Pay more for food that will not make you sick? Strange idea. Or perhaps CMG executives are going in a different direction...

 

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Tue, 12/08/2015 - 13:17 | 6894305 Groundhog Day
Groundhog Day's picture

How about not show up

Tue, 12/08/2015 - 13:21 | 6894337 Manthong
Manthong's picture

Geez, after half a bottle of Black Jack, nothing is better than a chimi that accelerates the projectile puking process.

Tue, 12/08/2015 - 13:24 | 6894374 pods
pods's picture

There was a "tainted" ingredient all right.

Tue, 12/08/2015 - 13:27 | 6894403 FL_Conservative
FL_Conservative's picture

That's the angle: Chipotle's is less expensive than Jenny Craig, NutriSystem and Weight Watchers for losing weight.  See, there's a silver lining in every cloud.

Tue, 12/08/2015 - 13:28 | 6894417 LowerSlowerDela...
LowerSlowerDelaware_LSD's picture

$8 for a burrito is too much as it is.

Tue, 12/08/2015 - 13:30 | 6894436 hedgeless_horseman
hedgeless_horseman's picture

 

 

I just don't understand how people can convince themselves to eat that corporate food.

I will stick with home grown, homemade, and healthy, like mrs_horseman's pot pie.

Tue, 12/08/2015 - 13:32 | 6894450 pods
pods's picture

I just made (and am eating) a big pot of Chankonabe.  Cheap as hell and has lots of calories.

pods

Tue, 12/08/2015 - 13:40 | 6894518 localsavage
localsavage's picture

Chipotle...the McDonalds of Mexican food.  

Tue, 12/08/2015 - 13:46 | 6894556 Manthong
Manthong's picture

Is that Bugs I see in there?

(referring to bunny not insects)

 

Tue, 12/08/2015 - 13:47 | 6894569 FL_Conservative
FL_Conservative's picture

HH, I don't see any "pot" in that pie?

Tue, 12/08/2015 - 16:48 | 6895655 CheapBastard
CheapBastard's picture

HH, that's very nice. When do you invite us zh'ers over for a fixed price dinner?

Tue, 12/08/2015 - 13:49 | 6894583 Soul Glow
Soul Glow's picture

I bake veggies almost everyday.  Potatoes, onion, garlic, then whatever veggies - beets, carrots, cauliflower - 400 degrees soaked in olive oil and a spash of vinniger.  Salted, seasond with spices and pepper.

Tue, 12/08/2015 - 14:33 | 6894863 kiwigal
kiwigal's picture

The rule for olive oil...always cold,never hot. It is carcinogenic at high temperatures. Don't cook with it.

Tue, 12/08/2015 - 15:42 | 6895275 TemporarySecurity
TemporarySecurity's picture

Clarified butter or coconut oil even lard. Then drizzle with the olive oil for more butter when done.

Tue, 12/08/2015 - 14:54 | 6894984 gimme soma dat
gimme soma dat's picture

mmm..... baked squash. Zuchini, summer squash, acorn squash, they're all so good. 

Tue, 12/08/2015 - 13:34 | 6894462 Rikky
Rikky's picture

looks awesome and to think this could've been made even 500 yeasr ago exactly the same way.  sometimes things are just fine they way they are.

Tue, 12/08/2015 - 14:23 | 6894803 Ward no. 6
Ward no. 6's picture

oh well most ppl think they are missing out on something if they don't go out to eat like it is this ultimate experience of a great night...

fools.

The kitchen is filthy

the cooks more then likely don't wash their hands

etc. etc.

eating at home is healthy.

Tue, 12/08/2015 - 13:30 | 6894438 Groundhog Day
Groundhog Day's picture

When Toyota had the brake issues several years ago, they gave my mother a "LIFE TIME OF FREE OIL CHANGES AS LONG AS SHE OWNED THE CAR" to KEEP her as a loyal customer.  These Aholes have some nerve, we screwed up and now you must pay more for our shitty meals

Tue, 12/08/2015 - 13:27 | 6894365 gafgroocK
gafgroocK's picture

 

 

 

That's what you get when you exclusively hire long-haired, bearded, tee-shirt wearing Hipsters loaded down with tattoos and piercings as food preparers for your customers.

 

I feel like puking right now.......the supply of Hipsters is growing expotentially...they will always have 20-30 waiting to hire up at a new store.........

 

Tue, 12/08/2015 - 13:28 | 6894410 corporatewhore
corporatewhore's picture

at my chipotel most of the workers have a tattoed teardrop near their eye.

 

what does that mean? /sarc

Tue, 12/08/2015 - 13:31 | 6894427 yrad
yrad's picture

I hate being grammar police but...

 

"We will see if poeple wil pay more not to get siuck and lose 15lbs"

 

Really ZH? My 2 year old is better than this.

Tue, 12/08/2015 - 15:57 | 6895347 WillyGroper
WillyGroper's picture

Pick the nits off a gnats nuts much?

You know what it meant.

Get a life.

Tue, 12/08/2015 - 14:41 | 6894874 Muse minus Time
Muse minus Time's picture

Quit eating lunch @ Costco(ecoli salad) after they changed the restroom water faucets over to automatic...when you find one that works, you get a 5 sec. wash.

Same issue at Chipo's?

Tue, 12/08/2015 - 18:43 | 6896232 kbohip
kbohip's picture

A very good point, and one that bugs me everyt time I see one of those useless auto water drizzlers.  How the Hell are you actually supposed to get your hands clean when there's barely any water coming out of the faucet?

Tue, 12/08/2015 - 13:17 | 6894308 GartmansTaint
GartmansTaint's picture

When you have our burrito,

You will shit inside your speedo...

 

at Chipotle, at Chipotle 

Tue, 12/08/2015 - 13:21 | 6894327 Handful of Dust
Handful of Dust's picture

" We sickened some folks. "

Tue, 12/08/2015 - 14:35 | 6894870 IAmStrider
IAmStrider's picture

Taco! Burrito! What's coming out of your Speedo!?!

Tue, 12/08/2015 - 14:45 | 6894928 847328_3527
847328_3527's picture

I've heard of Montezuma's revenge but now "Chipotle's Revenge?!"

Tue, 12/08/2015 - 16:49 | 6895657 CheapBastard
CheapBastard's picture
Boston College: 80 sickened after eating at Chipotle

 

http://finance.yahoo.com/news/chipotle-norovirus-likely-sickened-boston-...

Tue, 12/08/2015 - 13:18 | 6894318 izzee
izzee's picture

so rather than dying later, from eating your daily 2500 cal "Organic" Burrito.......

Tue, 12/08/2015 - 13:18 | 6894320 MountainsRoam
MountainsRoam's picture

CFO Jack Hartung,, What a DICK! 

Tue, 12/08/2015 - 13:20 | 6894335 Handful of Dust
Handful of Dust's picture

" If you want to keep your E coli infection, you can keep your E coli infection. "

Tue, 12/08/2015 - 13:21 | 6894339 Shizzmoney
Shizzmoney's picture

Shitpotle 

Tue, 12/08/2015 - 13:51 | 6894346 Normalcy Bias
Normalcy Bias's picture

Chipotle Grossly Overestimated How Much People Care Where Their Food Comes From

In the early days of Chipotle, CMO Mark Crumpacker focused on touting the company's "food integrity," but he quickly learned this wouldn't get him as many long-term customers as he thought.

On a panel today at Fast Company's Innovation Uncensored event in New York City, Crumpacker admitted that he had overestimated how much people care about animals and the environment. 

"It turned out to essentially not be true," Crumpacker said. "Only 20 to 30 percent of those people actually care about that stuff."

http://www.businessinsider.com/chipotle-cmo-mark-crumpacker-talks-about-food-integrity-2012-4

Tue, 12/08/2015 - 13:22 | 6894349 stant
stant's picture

Pepto cleptos

Tue, 12/08/2015 - 13:22 | 6894351 currentsea
currentsea's picture

will they still provide the option to pay less for to those willing to take on the e. coli risk?

Tue, 12/08/2015 - 13:23 | 6894360 847328_3527
847328_3527's picture

The Chipotle Trot

 

... and it's not their 5k race either.

 

Tue, 12/08/2015 - 13:23 | 6894361 Bill of Rights
Bill of Rights's picture

Where is the clown from a few weeks ago who said everyone in his city eats this crap?

 

How is that working out for you?

Tue, 12/08/2015 - 15:49 | 6895306 gimme soma dat
gimme soma dat's picture

That was probably me, as I do remember commenting that there are always lines in the dozens of Chipotles around my city.  I think they put crack in that stuff because when you say "chipotle" everyone drools. 

 

I'm more of a sad clown these days, though.  I've taken on the persona of a sad hobo clown so that I can excuse wearing brown pants. 

Tue, 12/08/2015 - 13:24 | 6894373 DontFollowMyAdv...
DontFollowMyAdviceImaDummy's picture

whoa whoa whoa, since when does "new supplier standards (which are NOT DISTRIBUTING ANY MORE E-COLI MEATS)" force a cost increase?  This means that Chipotle MUST HAVE KNOWINGLY USED UNSAFE STANDARDS TO SAVE $$$.  Their staff who made that decision should be in jail for endangering the public's health!  At least the fiat conjurers don't bailout restaurants so they'll be allowed to fail as they justifiably should.

Tue, 12/08/2015 - 13:25 | 6894376 Chuckster
Chuckster's picture

I wonder if Donald is responsible for this.

Tue, 12/08/2015 - 16:46 | 6895595 yellowsub
yellowsub's picture

You mean The Ronald?

Tue, 12/08/2015 - 13:25 | 6894377 roddy6667
roddy6667's picture

Mexican food is a contradiction in terms.

Tue, 12/08/2015 - 13:26 | 6894393 izzee
izzee's picture

"Chipotle's new slogan: "For a truly authentic Mexican food experience""

Hey Tyler!  That's MICROAGRESSION.

I no  longer feel safe on this site.

I demand you Resign

 

I need my binky, where did my teddy go?

Tue, 12/08/2015 - 13:26 | 6894395 Xscream
Xscream's picture

t ate there once a few months ago.. Expensive Taco bell to me. I dont get panera bread either 9 bucks for a half sandwich and reheated soup.

Tue, 12/08/2015 - 13:36 | 6894493 Rikky
Rikky's picture

You are correcto on Panera we just go there cause of the kids and its better than McDog foods or their competitors.

Tue, 12/08/2015 - 13:26 | 6894396 Colonel Klink
Colonel Klink's picture

The tainted ingredient is your overpriced food.

Tue, 12/08/2015 - 13:26 | 6894398 RiskyBidness
RiskyBidness's picture

I have a CMG relatively close to my house and I decided to drive by and check out the traffic just for kicks.  There were 5 people in the restaurant eating and 2 in line ordering.  For a company that relies heavily on 

econonomies of e-coli.....i mean economies of scale, this will be a great short into earnings. 

Tue, 12/08/2015 - 13:27 | 6894404 Soul Glow
Soul Glow's picture

HY bond fund got slapped in the face today.  

Tue, 12/08/2015 - 13:32 | 6894447 VladLenin
VladLenin's picture

The tainted ingredient is liberalism.

Tue, 12/08/2015 - 13:32 | 6894452 Rikky
Rikky's picture

Not to defend this turd of a company but its very easy for someone to spread a highly contagious germ no matter the safety precautions.  This is why I loathe to even eat out especially during sick season.

Tue, 12/08/2015 - 13:34 | 6894467 One And Only
One And Only's picture

E.Coli and Norovirus are about as organic as you get.

Tue, 12/08/2015 - 13:34 | 6894471 Baby Eating Dingo22
Baby Eating Dingo22's picture

Hard to keep food from being contaminated when you have brain-dead ass pickers and profit motivated management dishing out your "meal"

Tue, 12/08/2015 - 13:35 | 6894479 Tinky
Tinky's picture

"tainted" ingredients – as if they are typically healthy.

You'd be better off getting sick from e-coli and never returning than eating that junk without symptoms for years or decades.

Tue, 12/08/2015 - 13:37 | 6894496 FreeNewEnergy
FreeNewEnergy's picture

Chipolte Menu:

Hot To Trot Taco - When Dulcolax just won't do

Microagressive Burrito - To attack the "safe space" in your stomach

Crapola Chimichanga - filled with... yes... creamed crapola!

Montezuma's Revenge Pasticho - We're not sure what it is, but 10,000 burning assholes can't be wrong!

Tue, 12/08/2015 - 13:38 | 6894502 moonmac
moonmac's picture

When my local burrito joint poisoned it's customers with E. Coli they closed their doors for good. I guess corporations don't have to worry about that!

Tue, 12/08/2015 - 13:40 | 6894520 moonmac
moonmac's picture

You can only get Norovirus by ingesting an infected persons vomit or feces! YUM!!!

Tue, 12/08/2015 - 13:43 | 6894538 Squid Viscous
Squid Viscous's picture

when is next BC hoops game? I'm taking the under.

Tue, 12/08/2015 - 13:44 | 6894552 commishbob
commishbob's picture

I wonder how many "runs" the BC mens b-ball team will make in its next game. 

Tue, 12/08/2015 - 13:43 | 6894544 commishbob
commishbob's picture

Frighten and alienate your customers and the public in general, and then raise prices. Fabulous idea. 

Tue, 12/08/2015 - 13:45 | 6894558 jack flack
jack flack's picture

 

Chipotle goes all Non-GMO this year. 

 

Same year, there are big outbreaks, and big media coverage. Ecoli has certainly been used before as a tactical hit.

 

Coincidence?   Or, the Grain Merchants?

Tue, 12/08/2015 - 15:33 | 6895050 Prophet of Rage
Prophet of Rage's picture

This was what I was thinking. What are the odds that these outbreaks occur in several different states all at the same time? It doesn't seem to me like they would have the same supplier for......anything except maybe tortillas. Everything else (I would think especially meat and produce) would come from different suppliers/sources that are local. They never actually pinpointed the source, right?

Tue, 12/08/2015 - 16:06 | 6895412 yellowsub
yellowsub's picture

Fuck, and all that time I ate there because their napkins said they don't use GMO ?!

Tue, 12/08/2015 - 13:51 | 6894598 moman
moman's picture

 Chipotle going Non-GMO realy pissed Monsanto (Monsatan) off!

Tue, 12/08/2015 - 13:54 | 6894615 grapeape
grapeape's picture

remember the south park episode where everyone who ate there got a bloody asshole. that show is the new nostradomus.

Tue, 12/08/2015 - 14:16 | 6894768 Shizzmoney
Shizzmoney's picture

That food does run through you like stocks when they crashed earlier this year #freefallpoop 

Tue, 12/08/2015 - 13:55 | 6894624 VegasBob
VegasBob's picture

The beauty of Chipotle is that until now, Chipotle food was inedible.

I tried to eat it once.  It was, without question, the WORST fast food I have ever eaten.  I never went back for seconds.

What is the point of paying for overpriced fast food if it is edible? You'll just gain weight...

Tue, 12/08/2015 - 13:57 | 6894635 Arrowflinger
Arrowflinger's picture

Yo, ZH commentariat......you rock! Y'all made me laugh until my sides hurt. The comments above should get the Blog Commentariat Humor Award for 2015.

Carry on.

 

 

 

 

 

 

 

 

Tue, 12/08/2015 - 14:08 | 6894713 deerhunter
deerhunter's picture

Never got the greatness of Chipotle. E. coli generally speaking in ground meat products. Prime cuts not an issue.. How about rib eye burrito? I am certified or was to teach the National Institute Food Safety course for food handlers ! Your supply chain is important only until your meats, cheeses and produce hit the loading dock. If you have done due diligence on those suppliers before bringing them on board the rest is up to kitchen management .
E.Coli , though very serious problem, is relatively rare considering the billions of pounds of ground meat products consumed every year. Most food born sickness is caused by lack of proper management of common sense food handling . Back in the day over 20 years ago when I was a working chef I had the occasion to borrow something from a well known several star restaurant with a nationally known chef. They had 6 five gallon buckets of cheese soup sitting on the floor of the kitchen. The soup had a skim coating on top and as it was 630 PM , long after prep work and soup making is usually done I asked a cook how long the soup had been sitting on the floor? 130 that afternoon. A Petri dish of bacteria right there.
Common sense people

Tue, 12/08/2015 - 14:42 | 6894909 Yen Cross
Tue, 12/08/2015 - 16:06 | 6894967 yellowsub
yellowsub's picture

It's the MexEcoli strain.

Tue, 12/08/2015 - 15:00 | 6895023 Crocodile
Crocodile's picture

All by design; can't have "healthier foods"; you folks need GMO.

Tue, 12/08/2015 - 15:12 | 6895064 Ajax_USB_Port_R...
Ajax_USB_Port_Repair_Service_'s picture

Chipolte needs to put the entire meal in a microwave safe bag (EVERYTHING, even the lettuce). Get all the items up to 200 degrees F. then use tongs to hand the unopened bag to the customer. Yum! Safe to eat. Maybe they could try making salad dressing from that sanitizing hand gell. Use artificial thousand island dressing flavoring? Tangy! Tangy!

Tue, 12/08/2015 - 15:14 | 6895106 B.S.D.
B.S.D.'s picture

When keeping it real goes wrong...using authentic mexican water is NOT the way to go

Tue, 12/08/2015 - 16:12 | 6895448 IndianaJohn
IndianaJohn's picture

Chipotle's food poisoning began soon after they quit buying conventional, mainstream US pork and began scourcing pork from mudlot scources.

Tue, 12/08/2015 - 16:53 | 6895679 CheapBastard
CheapBastard's picture

What to do in an active shooter situation [where you are not the active shooter goes without saying].

 

1) run;

2) run faster;

3) keep running faster and farther.

 

If you are forced to shoot it's best to shoot back over your shoulder as you are running away.

 

I learn this military method under Capt Jacque La WeeWee in the French army.

Tue, 12/08/2015 - 17:02 | 6895734 herohedge
herohedge's picture

Have you been to a Chipotle recently? It's filled with mentally deficient shit stains who can't fill or roll a fucking burrito to save their lives. They can't remember what you tell them immediately after you tell them (never name more than one ingredient at a time). So you have to repeat yourself and yell and snot all over the food. They pass you to one helpless worker after another (never name more than one ingredient at a time), sort of like an assembly line without any of the efficiency. After seeing the result of their ineptitude they meekly shove the whole thing into foil hoping you won't notice the massive tears in the tortilla and gobs of too much sour cream and salsa spewing out like an infected period. In short, it's the employees, not the suppliers.

Tue, 12/08/2015 - 18:42 | 6896225 Fed_is_Love
Fed_is_Love's picture

Their food is always cold.

Tue, 12/08/2015 - 18:48 | 6896253 kbohip
kbohip's picture

I remember 20 years ago or so my friend wanted to take me to this great new place to eat (I live in Colorado).  Anyway, we get there and I eat what appears to be a burrito loaded with rice and beans and a couple of tiny pieces of meat.  That was the last time I ate at Chipotle or ever will again.

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