Chipotle Mexican Grill will likely lose 3 years worth of earnings due to multiple food poisoning outbreaks last year, according to J.P. Morgan analysts.
Free Confidential Lawsuit Evaluation: If you or a loved one got good poisoning after eating at Chipotle, you should contact our law firm immediately. You may be entitled to compensation by filing a suit and our lawyers can help.
What’s the problem?
April 18, 2016 – Chipotle’s ongoing food safety crisis has done more than damage its sales and once-sterling reputation; it also cost the restaurant chain its bottom line.
Chipotle will have lost 3 years of earnings between fiscal year 2014 and fiscal year 2017 after enduring multiple food poisoning outbreaks last year, according to a research note issued by J.P. Morgan last week. Analysts said they expect the company’s earnings per share in fiscal year 2017 to be about what they were in fiscal year 2014, despite a sales bump from the addition of roughly 700 restaurants during the same time period.
In an attempt to lure customers back, Chipotle has increased its marketing spending, offering buy one get one deals and other giveaways. However, these efforts are too little too late, at least in the short-term, as the company is expected to post its first-ever loss when it reports its first quarter earnings in 2 weeks.
The good news for Chipotle is that fallout from the food poisoning outbreaks isn’t likely to be long-term. The restaurant chain is “a highly meaningful brand, that with time and expense can regain customer trust,” the analysts wrote in conclusion.
Do I have a Chipotle Lawsuit?
The Food Poisoning Litigation Group at our law firm is an experienced team of trial lawyers that focus on the representation of plaintiffs in Chipotle lawsuits. We are handling individual litigation nationwide and currently accepting new food poisoning cases in all 50 states.
Free Confidential Case Evaluation: Again, if you developed symptoms of food poisoning after eating at Chipotle, you should contact our law firm immediately. You may be entitled to a settlement by filing a suit and our lawyers can help.