Chipotle’s focus in 2016 will be to bounce back from a disastrous E.coli outbreak, but the road to recovery won’t be easy.
It would make sense that the company would do something bold to try to win back affections—maybe something along these lines:
Any report coming from a publication called the Satira Tribune shouldn’t be taken seriously, but this is the Internet. Several people took this
piece of satire as gospel and got really excited about it.
Poor Chipotle Joe spent all weekend responding to tweets like this:
Chipotle’s headaches don’t stop there. The company is also facing lawsuits from investors for allegedly providing misleading statements about its
A civil lawsuit that was filed in U.S. District Court for the Southern District of New York claims that Chipotle failed to alert investors that "quality
controls were inadequate to safeguard consumer and employee health.”
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The investor lawsuit comes after Chipotle was issued a subpoena in connection
with a criminal investigation at one of the chain’s California locations. Bloomberg reported
that analysts are waiting to see if the worst is over:
“If ‘Saturday Night Live’ does a skit on Chipotle, maybe that’s the bottom,” said Stephen Anderson, an analyst at the Maxim Group who has a hold rating on
the shares, which fell to a one-year low of $413.29 on Friday. “The bad publicity surrounding the subpoena creates a whole new risk.”
“They really need to stay out of the headlines for six weeks,” Motley Fool analyst Jason Moser told Bloomberg. “Until they can pull that off,
there’s going to be questions.”