Burrito Blues: Chipotle's E. Coli Outbreaks Are Causing Long-Term Damage

Slowing sales and food-safey issues have weighed on Chipotle's (CMG) stock price. As a result, we predict more than 70% of Wall Street analysts will be forced to downgrades sales & EPS forecasts through at least 2017.

Frustratingly, there is no good precedent for Chipotle’s (CMG) food safety issues,” wrote RBC Capital Market analyst David Palmer. But citing Taco Bell’s past troubles, he forecast a year of sales declines for Chipotle.

Barclays analyst Jeffrey Bernstein has noted Chipotle’s recovery may take longer than other chains that have been hurt by foodborne illnesses, because social media has increased people’s awareness of such incidents.

He also noted that Chipotle’s “Food With Integrity” slogan makes the E. coli (fecal contamination) cases all the more damaging.

We clipped this chart from an article written by Candice Choi from The Associated Press.

We believe the fallout for Investors is far from Over 

Disclosure: None.

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