Sunday, November 19, 2017

Chipotle Woes Continue

Reports of illnesses from Chipotle are soaring

The rate of self-reported foodborne illnesses are at least nine times higher for Chipotle than all other restaurant chains, says Patrick Quade, the founder of     

"The rate of food poisoning reports attributed to Chipotle continues to be multiples higher than peers," Quade told Business Insider, referring to data pulled from his website, which allows people to self-report illnesses. "At this rate of reporting, our data indicates we should expect to see another outbreak attributed to Chipotle sometime in the next six to 12 months."
Have you been to a Chipotle lately? This was a favorite spot for my coworkers to go a few years ago.  And whenever you went, there was a long line of folks waiting for their chance to get a burrito.

The crowds are mostly gone.  Most lunch hours, you can walk right up to the counter and be out of the place within a few minutes of receiving your order.  

It's also been an ugly journey for shareholders.  Check out the stock!

What's next?  If the company can't stay out of the headlines regarding the quality of their food, I don't think it will translate into huge earnings growth or PE multiple expansion.

(And it would be nice if they offered white chicken as an option instead of thigh meat...)

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