Food Safety Is the Story Now, but Convenience Is the Future for Chipotle

Chipotle Mexican Grill (NYSE: CMG) has spent more than a year battling back from the damage the 2015 E. coli scandal did to its brand.

Even though the company has taken strong steps to protect its customers and address its food-safety issues, even minor health concerns can send its share price tumbling. That was evident in July, when a Norovirus outbreak forced the chain to close a Virginia store. That incident, in which more than a dozen people got sick, was caused by an employee coming to work while ill, even though the company offers paid sick days.

The company acted decisively in closing the affected location for a deep cleaning, but any hint of a food-safety problem sends its shares tumbling. Chipotle stock opened at $395.25 on July 18, the day of the incident, and has fallen steadily since closing on Aug. 22 at $305.51, a 22.7% drop.

Source: Fool.com