Chipotle CEO vows to reduce risk of future outbreaks 'near zero'
After a rough few months for Chipotle, shares of the fast-casual restaurant rallied this week as executives reassured the investing community that the chain is poised to bounce back from multiple food-safety scares.
Presenting at an investor conference in Orlando, Chipotle management said Wednesday that the brand's top priorities this year are to increase food safety and win back the trust of customers who have shunned the once-unstoppable chain.
"We face these difficult times now and need to reassure our customers that this can't happen again, and that we are going to reduce the risk of this kind of outbreak from occurring again to near zero," co-CEO Steve Ells said at the presentation, a recording of which was posted on Chipotle's website.
Chipotle locations were the site of multiple health scares in recent months that shut down some of the restaurants and sent sales tanking. More than 120 Boston College students contracted norovirus after eating at an area Chipotle last month. That incident occurred as Chipotle was dealing another hit to its business — dozens of cases of E. coli in outbreaks at Chipotle locations in nine states. Last week, Chipotle said sales at stores open at least a year fell 30% in December.
Chipotle's food safety woes lead to criminal investigation, sales slide
Chipotle is also the subject of a federal criminal investigation over a norovirus incident at a California store in August. Investors haven't been impressed — shares have fallen nearly 42% since their 2015 high. Though they're up more than 4% in pre-market trading Thursday after a late Wednesday rally.
The company, which has long been known for serving fresh ingredients, has vowed to overhaul its safety standards in the wake of the health issues. It also promises that an explanation of what went wrong is in store. A new marketing campaign is set to debut in February.
"We're going to be making an unprecedented effort to reach out to our most loyal customers with a detailed story about what happened," says Mark Crumpacker, chief creative and development officer. "Chipotle is known for being very transparent, and we intend to continue that."
Contributing: Aamer Madhani