For the past couple of weeks, Chipotle Mexican Grill, the leading fast casual restaurant chain in America, has gone through a major scare as a growing number of its venues have been found to be contaminated with a strain of the E. coli bacteria, but how much actual risk is there, really?
According to Fool.com, the chain's stock has dropped considerably due to the Chipotle outbreak, as a growing number of states see patients of E. coli after eating at one of their venues, and last Friday alone, shares dropped 12 percent after the Centers for Disease Control and Prevention (CDC) announced more reports of connections to the bacteria.
However, as CNBC reports, the fast-casual restaurant's shares will survive, as the following Monday after the latest Chipotle outbreak news, its shares were up 5 percent by the end of the day, so it's not altogether that bad.
According to Forbes, it's a tough time to be a Chipotle investor right now: at the time the Chipotle outbreak began, nearly two dozen customers became sick with E. coli between Washington and Oregon, and the chain closed all their locations in the area to avoid further problems; however, last week, it was revealed that the outbreak had also reached California, Ohio and New York, prompting a major scare for investors.
Barron's calls the way the Chipotle outbreak has been handled "an overreaction" to a situation that will undoubtedly be corrected in a short amount of time, particularly considering that Chipotle is an industry leader when it comes to growth and returns.
In fact, Chipotle is possibly the most iconic restaurant in the fast casual industry, and it's currently collaborating with health authorities, both federal and state-wise, to locate the cause of the E. coli outbreak and make sure it doesn't happen again.
It would seem as if Chipotle's outbreak should be resolved soon - but it might be safer to stay away from their famous guac while the air clears.
