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
- *CHIPOTLE: STILL HAVE NOT IDENTIFIED THE TAINTED INGREDIENT
- *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...
Chipotle's new slogan: "For a truly authentic Mexican food experience"— zerohedge (@zerohedge) December 8, 2015