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Rats! Chipotle Mexican Grill, Inc. (CMG) Stock Is Falling Apart!

Chipotle Mexican Grill, Inc. (NYSE:CMG) almost had Wall Street convinced that things had turned around. Almost. CMG stock had recovered some of its losses from more than a year’s worth of battering following a 2015 E. coli scandal, and management was enjoying a return of confidence in its ability to turn the ship around.


Recall that in 2015, Chipotle shares had soared to highs of more than $700. The company seemed unstoppable. The restaurant was opening up new locations left and right, and same-store growth was continuing mostly unabated. Customers were satisfied and believed they were getting a fresher, more sustainable product. Good for the environment meant good for customers meant good for shareholders.

But a couple days ago, CMG stock reeled amid customer reports that they had been sickened with norovirus after eating at a location in Virginia — claims that have since been confirmed. And now, the stock is tanking yet again after diners complained of rats (actually mice) in the restaurant, with one customer claiming that her meal was “ruined by rodents falling from the ceiling.”

Now come the questions. Has Chipotle done enough to ensure top standards in the supply chain? It’s hard to believe that, what with reports of 13 sick customers in Virginia, and a “structural gap” that...