Newspaper article Charleston Gazette Mail

Chipotle Bounces Back after End-of-Week Sell-Off

Newspaper article Charleston Gazette Mail

Chipotle Bounces Back after End-of-Week Sell-Off

Article excerpt

NEW YORK - Chipotle rebounded from a heavy sell-off in shares to end last week after it was discovered that the E. coli outbreak connected to restaurant chain had spread from the Pacific Northwest to a number of other states. In all, 45 people in six states have been affected, with 43 of those saying they ate at Chipotle the week before they became sick.

However, analysts who follow the restaurant chain say the damage to the company may be limited.

The equity research team at William Blair found that of the 800 people they surveyed earlier this month, nearly half were unaware of the E. coli outbreak linked to the restaurant. And the older the survey taker, the higher the rate of awareness, which is good news because Chipotle customers tend to skew under 45 years old.

Analyst Sharon Zackfia wrote that an outbreak of salmonella at 22 Chipotle restaurants in Minnesota "resulted in a double-digit drop in sales in the affected region for a few weeks before sales largely recovered. …

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