Chipotle says criminal investigation widens

  • Associated Press
  • Tuesday, February 2, 2016 2:42pm
  • Business

NEW YORK — Chipotle says the scope of a previously disclosed federal criminal investigation has widened beyond a single restaurant in California.

The Denver company says it has been served with another subpoena requiring it produce documents related to company-wide food safety dating back to the start of 2013. Previously, it had said it was served a subpoena in relation to a California restaurant, where there was a norovirus outbreak over the summer.

Chipotle Mexican Grill Inc. also confirms its sales sank 14.6 percent at established locations for the fourth quarter after an E. coli outbreak and a separate norovirus incident sickened dozens of people. That’s the first sales drop since the company went public a decade ago.

Already, the company is trying to move past its troubles. Co-CEO Steve Ells noted the Centers for Disease Control and Prevention declared this week that the E. coli outbreak appeared to be over, and that the company was “pleased to have this behind us.”

Chipotle has said it will step up marketing in coming weeks to win back customers. The company also said it has been implementing food safety measures to prevent another incident.

Total revenue for the quarter fell 7 percent to $997.5 million, falling short of the $1.01 billion analysts expected. Profit fell 44 percent to $67.9 million, or $2.17 per share. Analysts expected $1.86 per share, according to Factset.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.