Chipotle Has Reopened That Restaurant Where People Got Violently Ill

Why Analysts Expect Chipotle’s EBIT Margins to Rise in 2Q17

The restaurant chain Chipotle's Mexican Grill found itself in a familiar albeit unfavorable position Tuesday when stocks plummeted almost 8 percent after reports surfaced that multiple customers were ill after eating at one of the chains' restaurants in Sterling, Virginia.

The store outside Washington, D.C. closed Monday after Chipotle became aware of reports of illnesses.

Jim Marsden, Chipotle's executive director of food safety, said in a statement that "the reported symptoms are consistent with norovirus". Marsden said, "In accordance with our established protocols, our team is working to ensure the safety of our customers and employees, including voluntarily closing the restaurant yesterday to conduct a complete sanitation". "Norovirus does not come from our food supply, and it is safe to eat at Chipotle".

In 2016, they experienced a high-profile E.Coli outbreak that forced all USA stores to close briefly to "to discuss recent and future food safety changes".

Chipotle Mexican Grill's shares fell more than 5 percent Tuesday, after Business Insider reported the closure in Virginia. In this particular case, the Virginia Chipotle customers reported instances of diarrhea, fever, nausea and vomiting shortly after dining at the fast food chain.

Chipotle can expect to fork out between $5,000 and $10,000 per customer to settle the Sterling outbreak, according to Marler. Since the last reported health incident, the company seemed to be on positive upward trend, but throughout those years, incidents such as data breaches, lawsuits, and even drug allegations against the senior manager have hindered the company from growing, and then now, another illness outbreak caused by the company.

Norovirus is highly contagious causing excessive vomiting and diarrhea. Norovirus is a leading cause of outbreaks from contaminated food, and infected employees are a frequent source of the outbreaks, according to the Centers for Disease Control and Prevention.

"On the surface, norovirus at a single location is not overly significant", BMO Capital Markets' Andrew Strelzik said to Fortune. "Friends ill as well with one friend also in ER".

The company implemented new food safety procedures and said in January 2016 that they were "largely in place".

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