Chipotle pulls jalapeños in Minnesota after possible salmonella link, stock drops
Chipotle said it removed jalapeños from its Minnesota restaurants after a potential salmonella connection was identified, sending the company's shares down nearly 10%.
Chipotle Mexican Grill announced on Tuesday that it has temporarily removed jalapeños from its Minnesota locations after learning the peppers might be linked to a salmonella outbreak. The company said it substituted the product with peppers from other growers.
"We have a robust ingredient traceability system and, upon learning of a potential Salmonella outbreak in the supply chain impacting several food service retailers, we proactively identified jalapeños as a potential common ingredient from a common lot, removed them from the restaurants where they had been distributed, and replaced them with product from different growers," Chipotle spokesperson Laurie Schalow told CNBC.
The news sent Chipotle shares down almost 10% at market close. Investors appeared to recall the chain's history of food-safety incidents, which included at least five outbreaks between 2015 and 2018. Since then, Chipotle has introduced additional employee training, expanded sick-day policies and upgraded its food-safety protocols.
The announcement came amid heightened consumer concern over foodborne illnesses, including a cyclospora outbreak that the CDC has linked to more than 6,700 cases and two deaths in Michigan. While Chipotle does not use ingredients tied to that outbreak, the company said the broader concern has affected its sales in late July. Bloomberg was the first outlet to report the jalapeño pull.