Ryan Gaumont reports that Chipotle Mexican Grill, Inc. has just had more bad news. Eighty students at Boston College became ill after eating at a Chipotle’s restaurant near the campus. Chipotle says that the cause of the illness is probably norovirus, not E. coli, a bacterial infection that has sickened 52 Chipotle customers in nine other states. Chipotle is keeping the Boston location open.
The illness problem has been bad for Chipotle’s business. The company’s stock prices fell sharply after the company closed restaurants in the Pacific Northwest and four other states to do cleaning because of the E. coli problem. Chipotle’s stock dropped $9.63 on Tuesday and closed at $542.12. At the end of last week, the company dropped its financial forecast for 2016 and predicted a drop in quarterly same-store sales. At least 16 analysts have cut their price targets on Chipotle shares since last Friday.
On the bright side for Chipotle, a J.P. Morgan analyst believes that this is the right time to buy Chipotle stock.
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