Chipotle shares drop 7% after removing jalapenos linked to salmonella outbreak
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IN SHORT
Chipotle's stock fell 7% following the removal of jalapeños from some of its restaurants due to a potential link to a salmonella outbreak, prompting an investigation by health officials. Meanwhile, the Federal Trade Commission is intensifying its antitrust review of Cencora's proposed $3.5 billion acquisition of Covetrus's MWI Animal Health unit, issuing information demands to gather more data on the deal's competitive impact.
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Key Numbers
7%Chipotle stock drop
$3.5BCencora's proposed acquisition value
Who's Involved
Chipotle
restaurant company removing jalapeños due to salmonella concerns
health officials
investigating a potential salmonella outbreak
Federal Trade Commission (FTC)
conducting antitrust review of Cencora-Covetrus deal
Cencora
company seeking to acquire MWI Animal Health unit
Covetrus
company whose MWI Animal Health unit is being acquired
MWI Animal Health
animal health unit subject to acquisition
Key facts
Chipotle shares dropped 7%.
Chipotle removed jalapeños from some restaurants.
The removal is linked to a potential salmonella outbreak.
Health officials are investigating the outbreak.
The FTC is reviewing Cencora's acquisition of Covetrus's MWI Animal Health unit.
The acquisition is valued at $3.5 billion.
The FTC issued information demands to customers and rivals.
The FTC's review is an antitrust inquiry into competitive effects.
Chipotle Mexican Grill experienced a 7% decline in its share price after the company decided to remove jalapeños from some of its restaurant locations. This action was taken due to a potential connection between the jalapeños and a salmonella outbreak, which health officials are now investigating. The company's decision to remove the ingredient has led to a significant drop in its stock value.
In a separate development, the U.S. Federal Trade Commission (FTC) is conducting a more thorough antitrust review of Cencora's planned acquisition of Covetrus's MWI Animal Health unit. The deal is valued at $3.5 billion. The FTC has escalated its scrutiny by issuing information demands to both customers and competitors within the animal health sector. This move signals a formal inquiry into the potential competitive effects of the proposed merger, indicating that the commission is seeking extensive data to assess the transaction's impact on the market.
↳ Why This Matters
Chipotle Mexican Grill experienced a 7% decline in its share price after the company decided to remove jalapeños from some of its restaurant locations. This action was taken due to a potential connection between the jalapeños and a salmonella outbreak, which health officials are now investigating. The company's decision to remove the ingredient has led to a significant drop in its stock value.
Frequently asked questions
Symptoms include diarrhea, fever, severe vomiting, dehydration, and stomach cramps. Most people recover within a week, but infections can be more severe in vulnerable populations.
Yes, Chipotle faced larger outbreaks of E. coli, norovirus, and food poisoning between 2015 and 2018, which impacted sales. The company has since stated it has stronger food safety practices.
Chipotle has not been named or tied to government investigations into a separate cyclospora outbreak linked to shredded lettuce, though the company is bracing for lower sales due to the general impact on the dining industry.
What Happens Next
01The FDA may provide further public health updates if actionable information becomes available.
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