Chipotle Stock Downgraded on Latest E Coli Outbreak
Chipotle shares continued falling this week after the latest outbreak of E Coli hit the casual fast food chain. The stock has lost more than a third of its value since October 13, when its value peaked at $750.42 per share. The latest outbreak, which impacted five people in three states, prompted the shares to drop from $538.90 on Monday to below $500 Tuesday afternoon. A number of analysts have responded by downgrading the stock, even some who've considered a downgrade unnecessary after previous issues for Chipotle. When 150 people were infected with norovirus at a Boston Chipotle several weeks ago, JPMorgan analyst John Ivankoe called the outbreak a “phenomenally unlucky coincidence,” saying it would be rash to downgrade the stock at that time. The latest incident prompted Ivankoe to reconsider, and he dropped the stock from “overweight” to “ neutral”.