Chipotle shares extended their slide Monday as an E. coli outbreak linked to its restaurants has the company facing its first decline in a key sales figure.
The chain known for touting its quality ingredients had said Friday it expects sales to drop between 8 and 11 percent at established locations for the fourth quarter if current trends continue. That would mark the first time the figure fell since Chipotle went public in 2006.
Chipotle’s stock closed down 1.7 percent at $551.75 Monday.
The outbreak has sickened 52 people in nine states.
Denver-based Chipotle Mexican Grill Inc. says whatever the likely ingredient was that made people sick is out of its restaurants and that it is adopting stricter food-safety standards.
The company, which has touted its use of local ingredients, said some of its local produce suppliers might not be able to meet the new standards. Locally sourced produce accounts for a “relatively small percentage” of the produce the chain uses, spokesman Chris Arnold said.
Jeffrey Bernstein, a Barclays analyst, noted that fast-food chains have recovered from similar foodborne illnesses in the past. But he said Chipotle’s recovery likely will take longer, given greater social media awareness.
Bernstein also noted that Chipotle is known for its “Food with Integrity” slogan, which makes the E. coli cases “all the more damaging.”
