Chipotle Mexican Grill Stock (CMG) Plunges on Reports of Salmonella Outbreak

Shares of Chipotle Mexican Grill (CMG) are down 7% on reports of a salmonella outbreak at the restaurant chain.

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While the company that specializes in Mexican cuisine has not made a public statement about a salmonella outbreak, there are media reports that the company has removed jalapeños from several of its Minnesota restaurants after state health officials linked the peppers to a salmonella outbreak that has sickened 110 people.

CMG stock was down as much as 9% immediately after the reports surfaced about the removal of the jalapeños. It is the largest intraday slide in Chipotle's stock since Oct. 30 of last year. Investors remain sensitive to any foodborne-illness involving restaurant companies given the current Cyclospora outbreak that is sweeping across the U.S. and impacting Taco Bell, which is owned by Yum! Brands (YUM).

Food Safety Concerns

Some media reports say that Chipotle has confirmed removing jalapeños peppers from several of its restaurant locations, and has replaced them with jalapeños from other growers after learning of a possible supply-chain outbreak of salmonella impacting several other food-service companies.

Salmonella is a bacteria that causes food poisoning in people, leading to stomach pain, diarrhea and fever. It appears that the outbreak involving Chipotle has been confined to restaurant locations in the State of Minnesota. Prior to Aug. 4, CMG stock had