Chipotle's sales outlook uncertain as it recovers from E.coli
- 8 years ago
Chipotle Mexican Grill Inc's plans to spend heavily on marketing and food safety after a spate of E.coli and norovirus outbreaks will help the burrito chain regain its popularity, analysts said, but it's anyone's guess when sales will recover.
The troubled company said on Tuesday that sales at established restaurants plunged by more than a third in January after declining 15 percent in the fourth quarter.
Chipotle's shares fell as much as 7 percent on Wednesday morning, but recovered to be down 3 percent at midday.
The U.S. Centers for Disease Control and Prevention (CDC) said on Monday that the E.coli outbreaks appeared to be over, but Chipotle now faces a nationwide federal probe into its food-safety practices.
The troubled company said on Tuesday that sales at established restaurants plunged by more than a third in January after declining 15 percent in the fourth quarter.
Chipotle's shares fell as much as 7 percent on Wednesday morning, but recovered to be down 3 percent at midday.
The U.S. Centers for Disease Control and Prevention (CDC) said on Monday that the E.coli outbreaks appeared to be over, but Chipotle now faces a nationwide federal probe into its food-safety practices.