The aftermath of Chipotle's food safety crisis in 2015, when cases of E. coli and norovirus popped up at Chipotle restaurants around the country, led to a steep drop in sales and profits in 2016. With the company unable to recover quickly, investors spent the year selling off the stock. CMG data by YCharts.
Why is Chipotle stock down 17% year to date?
· Shares of Chipotle Mexican Grill ( CMG 2.90%) dropped 21.4% in 2016, according to data provided by S&P Global Market Intelligence. The aftermath of Chipotle's food safety crisis in 2015, when cases...
Why is Chipotle shutting down for a few hours?
· Comparable sales plunged 29.7% during the first quarter of 2016, driven by a significant number of customers staying away from the chain. A 36.4% decline in comparable sales in January marked the ...
What happened to chiptopia at Chipotle?
· Chipotle reported a 29.7% decline in comparable sales during the first quarter, driven by a 21.1% decrease in transactions. Restaurant-level operating margin was just 6.8%, down from 27.5% during ...
Can Chipotle ever return to profitability?
· Influential analyst Howard Penney thinks Chipotle's financial problems are only going to get worse. Chipotle's stock has already been crushed by the food safety crisis at the …
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· And investors loved the stock. At the height of its popularity, Chipotle's stock was at a high of about $750. It has since plummeted to as low as $428 a share -- a 42% drop.
What was the scandal with Chipotle?
Chipotle, which is based in Newport Beach, Calif., was charged with two counts of violating the Federal Food, Drug, and Cosmetic Act by “adulterating food while held for sale after shipment in interstate commerce,” prosecutors said.
Why did Chipotle stock jump?
Share of Chipotle jumped nearly 7% in after-hours trading after the fast-food chain reported higher-than-expected earnings for the latest quarter.
Why did Chipotle shut down?
Chipotle Mexican Grill CEO Brian Niccol announced Tuesday that the chain's 2,600 restaurants will temporality halt dine-in service, joining dozens of restaurant chains around the country trying to limit the spread of novel coronavirus.
When did Chipotle get in trouble?
2015 Outbreak of Norovirus, Chipotle Mexican Grill, Simi Valley, California — In August 2015 Ventura County Environmental Health and Ventura County Public Health Division staff investigated an outbreak of norovirus among patrons of a Chipotle restaurant in the Simi Valley Towne Center.
Why is Chipotle's stock price so high?
Why Is Chipotle Stock So High: The Bottom Line Its share prices are back to the trajectory they were on pre-Covid, bucking the industry trend and leaving a spotlight on this company for better or worse.
Is Chipotle stock a Good Buy?
Is CMG Stock A Buy, Sell, Or Hold? CMG stock is a Hold. Chipotle is an attractive long-term investment candidate as I detailed in the previous section. But CMG is not a Buy now, as its current valuations are unappealing and it is expected to witness much slower growth in 2022.
What did Chipotle get sued for?
Chipotle stockholders have filed a lawsuit against the restaurant chain alleging that company executives awarded themselves “hundreds of millions” of dollars just before stock prices tanked last year following multiple food poisoning outbreaks.
How did Chipotle bounce back?
Chipotle launched an enhanced food safety program, which included DNA-testing ingredients before they're shipped to restaurants, changes to food prep and handling practices, and offering paid sick leave to disincentivize sick employees from working.
Why are so many Chipotle closed?
Last year, Chipotle had a string of extremely unfortunate cases where customers would get sick from eating at the fast-casual restaurants. Now, the company will be closing down ALL of its restaurants this February to address the recent health concerns and talk about food safety.
Is Chipotle in financial trouble?
As of December 31, 2021, Chipotle continues to maintain a strong financial position with $1.4 billion in cash, investments and restricted cash, and no debt.
Why did Chipotle have an E. coli outbreak?
Chipotle restaurant workers fill orders for customers. A type of bacteria that forms when food is left out at unsafe temperatures caused Chipotle Mexican Grill's latest foodborne illness outbreak.
How much did comparable sales fall in 2016?
Comparable sales plunged 29.7% during the first quarter of 2016, driven by a significant number of customers staying away from the chain. A 36.4% decline in comparable sales in January marked the bottom, but sales remained weak all year. Comparable sales fell 23.6% in the second quarter and 21.9% in the third quarter.
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Is chipotle going to return to comparable sales?
Chipotle expects to return to comparable sales growth in 2017, although two-year comparable sales will likely remain negative. The company is aiming for around $10 of per-share earnings for the year, a major improvement over 2016 but well below the EPS of $15.10 Chipotle reported in 2015.
Why did chipotle lose its quarterly revenue?
The food safety concerns caused a plunge in sales that led to Chipotle's first-ever quarterly loss as a public company.
Did Chipotle shareholders agree with Penney?
Chipotle responded by telling CNNMoney a "significant majority of our shareholders don 't agree with Mr. Penney." Chris Arnold, a company spokesman, pointed to how both of Chipotle's co-CEOs, including founder Steve Ells, were reelected and received more than 95% of the shareholders' votes.
Is chipotle under investigation?
Even more concerning, Chipotle is facing a rare criminal investigation from the FDA's Office of Criminal Investigations.
How much did the recent cholera outbreak cost?
Chipotle said it thinks the recent outbreaks will end up costing between $14 million and $16 million. CEO Steve Ells said earlier this week that he was "hopeful" the Centers for Disease Control would soon declare that the outbreaks were over.
Is chipotle a non-GMO company?
Before the outbreaks, Chipotle had cultivated a loyal following with its adoption of non-GMO standards and other health conscious initiatives. And investors loved the stock. At the height of its popularity, Chipotle's stock was at a high of about $750. It has since plummeted to as low as $428 a share -- a 42% drop.
Did chipotle have E. coli?
In December, Chipotle suffered from two more outbreaks. Roughly 140 students at Boston college were infected with norovirus and a second new incidence of E. coli broke out affecting five people in three states.
Did chipotle get sued?
The trouble didn't end with the outbreaks however. Customers have sued Chipotle and the company was recently served with a subpoena by the U.S. Food and Drug Administration's Office of Criminal Investigations.
Is chipotle shutting down?
Chipotle is shutting down all of its stores nationwide for a few hours next month to hold a national staff meeting about food safety. The meeting will occur on February 8 and the company's more than 1,900 restaurants will take part.
Does chipotle have norovirus?
Chipotle ( CMG) has suffered from several outbreaks of E. coli, Salmonella and norovirus that infected customers and led to an unrelenting stream of criticism and mockery on social media.
When does Chiptopia end?
The Chiptopia loyalty program ends on Sept. 30. But the company said it will be launching another loyalty program. No details were provided on whether this will be a permanent program or another short-term one.
Does chipotle have chorizo?
Chipotle also added new menu items, such as chorizo, to attract visitors.
Is chipotle back to profitability?
Chipotle Mexican Grill Inc. (NYSE: CMG) swung back to profitability in Q2 2016. That helped push shares up 3.44% to $433.46 in morning trading Friday. Reports of "modest" improvements in customer traffic thanks to giveaways and a new loyalty program lifted the stock.
Is Maxim Group selling on CMG?
Maxim Group maintained its "Sell" rating on CMG and $300 target following Q2 results. The firm said there was no positive takeaway from the earnings report. And they claimed any good that came from the loyalty program won't be enough.
Who took over the chipotle?
The stock has been on a tear since CEO Brian Niccol, who was formerly the head of Chipotle (CMG) rival Taco Bell, left the Yum! Brands (YUM) -owned fast food chain to take over Chipotle (CMG) in February 2018.
Who is the CEO of chipotle?
Why Chipotle's Brian Niccol is the CEO of the year. The moves are paying off. Chipotle’s revenue soared nearly 14% in the first quarter and sales at restaurants open at least a year were up nearly 10%. Digital sales more than doubled and now account for about 16% of total revenue.
How many stores does chipotle have?
Miller said she thinks Chipotle, which now has 16 stores abroad, will be able to generate big sales growth from new markets such as the UK and Europe. “The international business is a small part of the story currently; however, we remain believers in the long-term potential for the brand’s international expansion,” she wrote.
Is chipotle up or down?
Chipotle is now up 75% in 2019, making it one ...
Does chipotle have salad bowls?
Under Niccol, Chipotle has added new salad bowls to cater to consumers on pale o and keto genic diets, and has also introduced more menu options for vegetarians and vegans . Benjamin Rasmussen/The New York Time/Redux. Why Chipotle's Brian Niccol is the CEO of the year. The moves are paying off.
