Topline
Chipotle shares tanked 9% on Tuesday after announcing it pulled its supply of jalapeños potentially linked to a salmonella outbreak, restocking from different growers as cases of the foodborne illness surged in Minnesota.
Key Facts
The Minnesota Department of Health identified 110 salmonella javiana cases, with dozens of symptomatic people reporting they recently ate at Chipotle, The Wall Street Journal reported Tuesday.
Nearly 90% of the 84 patients interviewed reported eating at Chipotle from mid-June to July, Carlota Medus, senior epidemiologist supervisor in the department’s foodborne diseases unit, told the Journal.
Chipotle shares tumbled nearly 9% to about $34.09 as of Tuesday afternoon, erasing gains made at the end of July.
Chipotle said in a statement it used its ingredient traceability system to identify jalapeños from a common lot as a potential contamination source, pulling the fruit from its restaurants and replacing it with new batches from different growers.
Chipotle noted the outbreak is “impacting several food service retailers,” though it is unclear what other restaurants may have been impacted.
Tangent
Chipotle’s stock is down 6.7% since the start of the year.
Key Background
U.S. consumers, namely those in the Midwest, have been on high alert for foodborne illness in recent weeks amid a cyclosporiasis outbreak in the region. Michigan reported the first two deaths of the outbreak Tuesday as cases climbed past 11,000 in the state. The illness is characterized by diarrhea, stomach cramps and fatigue. The cyclosporiasis outbreak in nine states has been linked to iceberg lettuce, with the Food and Drug Administration initially pointing to iceberg lettuce served at Taco Bell and supplied by Taylor Farms. The FDA later said the Taylor Farms link was rooted in a false positive test, though it has insisted there is “overwhelming epidemiological data” that supports the link between Taylor Farms and the outbreak.
Further Reading
Michigan Reports 2 Deaths In Cyclosporiasis Outbreak (Forbes)