Is Chipotle Losing Charm In The Market Following E. Coli Outbreak?

Chipotle Mexican Grill’s growth in the fast food industry was remarkably fast. Sadly, the same rate could be taking place in its downfall. The famous chain of burritos, tacos and whatnot is apparently suffering from corporate downswing.

According to the Independent, in the wake of a series of corporate crises from popular companies like Volkswagen, Tesco and Talk Talk, Chipotle was not spared despite its rapid expansion in the past five years.

All thanks to its straightforward approach to advertising by producing films featuring organic farming and ethical sourcing, Chipotle quickly became a large name in the fast food industry. The company even bagged awards and recognitions for its viral advertisements in festivals like Cannes Lions.

However, its advertising sector may have quickly lost its charm following the E. coli outbreak that stained some of its restaurants. In fact, its shared dropped by 19 percent this tear.

Apparently, when an E. coli outbreak hit the U.S., the Centers for Disease Control and Prevention (CDC) found out that 43 people out of 45 cases got infected after reportedly eating at a Chipotle restaurant.

Because of this, the Mexican Grill was forced to temporarily stop the operations of its 43 outlets in and around Oregon and Washington states. 

In the face of the outbreak, Chipotle remains resilient by insisting that it will not close other restaurants. In a statement to People, a spokesperson for Chipotle explained why this is so. 

"At the moment, we do not believe that it is necessary to close any restaurants because [of] the timing of visits," spokesman Chris Arnold said.

Arnold added, "It's important to note that, while these incidents are newly reported, they aren't really new in that exposure would was weeks ago."

Chipotle's statement comes amid newly reported cases in New York, California, Ohio and Minnesota.

Meanwhile, it appears that three other restaurants are moving forward and quickly growing in the industry in the face of Chipotle's ordeal.

The Motley Fool reported that Shake Shack, Domino's Pizza and Del Taco are getting stronger reception after the second quarter. 

While Shake Shack's shares are up by 17.1 percent, Domino's Pizza shares have grown by 10.5 percent. On the other hand, Del Taco is seeing  5.6 percent rise in its shares.

These three chains are doing really well at the moment and the final quarter may be looking bright for them as well. Whether or not they will surpass Chipotle's success remains unknown as of this time. 

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