A Foolish Take: Chipotle stock is taking a beating

A Foolish Take: Chipotle stock is taking a beating

People walk past a Chipotle restaurant on Broadway in Lower Manhattan on February 8, 2016 in New York City.

A Foolish Take: Chipotle stock is taking a beating

Data source: YCharts.com. Chart by author.

Just as the burrito chain began to emerge from under the shadow cast by a series of foodborne illness outbreaks in late 2015 and early 2016, the company is now back at square one, following reports that customers at one of its locations contracted norovirus earlier this month.

The news sent Chipotle's share price careening down. Shares are now at their lowest level since 2013, wiping out four years of gains.

Whether Chipotle can fully recover from this latest incident remains to be seen, given the cumulative damage to its reputation in the eyes of consumers. Unlike peers who never faced the intense scrutiny of making it to the top, Chipotle now has very little room for error.

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John Maxfield owns shares of Chipotle Mexican Grill. The Motley Fool owns shares of and recommends Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.



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