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Actionable news in CMG: CHIPOTLE MEXICAN GRILL Inc,

Chipotle Just Landed a Mortal Wound That Should Make It Want to Change Its Name

A new foodborne illness scandal requires a total re-brand at Chipotle Mexican Grill Inc. (CMG) , according to one branding expert.

Shares of Chipotle dropped 2.4% to $347.68 in midday trading Friday, July 21, hitting new 2017 lows, as Chipotle grappled with twin PR crises. Public health officials confirmed that a customer at a Chipotle location in Sterling, Va. is ill with norovirus, while data from food poisoning crowdsourcing website iwaspoisoned.com indicates that over 100 customers at that location also fell ill. The same week, customers complained that a Dallas location had rats "falling from the ceiling."

"The event that occurred at this restaurant is consistent with Norovirus which can be introduced by people into any closed environment like schools, cruise ships, nursing homes or restaurants," Chipotle CEO Steve Ells said in a statement. "It is unfortunate that anyone became ill after visiting our restaurant, and when we learned of this issue, we took aggressive action to correct the problem and protect our customers."

Foodborne norovirus outbreaks are usually caused by individual ill workers, rather than larger supply chain problems, a fact that Eric...


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