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Chipotle Mexican Grill's Ratings Go Down Following E.Coli Warning

Update Date: Dec 06, 2015 04:23 PM EST
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Famous restaurant chain, Chipotle Mexican Grill, braces for a deep dive as its shares plummet amid reports of E. Coli outbreak.

What was originally thought of as an isolated case of a food-borne illness had become a growing business nightmare for the famous burrito-maker. The outbreak is spreading like wildfire across the continental US as new cases were brought up to public knowledge in recent months.

The food scare is fueling a number of notable financial naysayers to bring stock prices to dismal lows.

Deutsche Bank investment analysts, for example, appraised Chipotle share price from $710 to $525 as reported by Dakota Financial News.

While negative predictions tend to get a lot of attention these days, some experts see the whole situation as a buying opportunity.

The Motley Fool noted that up-and-down fluctuation of Chipotle stock prices is an indication that some investors are enterprisingly optimistic that something good might come out of it in the end.

Meanwhile, some analysts are equally unconvinced that Chipotle would effectively recover soon.

"In the intermediate term, I don't like Chipotle," warned trading specialist D.R. Barton as quoted by EFT Daily News although he consolingly remarked that it may recover after some time. After all, a number of companies re-emerged as robust as ever after going through such crisis.

In fact this is not the first time a food scare like this happened.

The Motley Fool also documented E.Coli cases in the past involving restaurant chains like Jack in the Box and Yum! Brands. Both survived the ordeal despite earlier setbacks.

Just recently, Costco is also dealing with an E.Coli outbreak that threatens to bring its shares down, The Motley Fool added in a separate report. The outcome though remains to be seen.

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