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Last day supplement sours Chipotle quarterly beat



(Reuters) – Chipotle Mexican Grill Inc said on Thursday it received another summons from US federal prosecutors, seeking information related to an outbreak that left hundreds of people ill last year in one of its Ohio restaurants.

Shares of the Burrito chain fell 5 percent after the disclosure, and after analysts said they see limited valuation even since the company had outperformed expected quarterly sales and profits on Wednesday.

"It's not a new event, but (the summons) is enough to shak some of the more dirty bulls on the story," said Maxim Group analyst Stephen Anderson.

Over the past three years, the company has met a number of cases related to diseases related to the restaurants following an E. Coli, salmonella and norovirus outbreak at the company's outlets dating back to the end of 2015, which hit hundreds over several states.

The last summit is the fourth and is part of An ongoing criminal investigation Entrance conducted by the US Federal District Attorney's Office

In August of last year, a type of bacteria found in meat and cold food was left at precarious temperatures responsible for making hundreds of people sick in a Powell , Ohio restaurant

Judgment of the Court, revealed https://www.sec.gov/Archives/edgar/data/1058090/000105809019000015/cmg-20190331x10q.htm in a Regulations on Inheritance ering on Thursday, seeking information related to the incidents of diseases associated with Ohio's restaurant and restaurants in California, Massachusetts and Virginia, which were covered in previous conventions.

Wednesday's results follow Chipotle's efforts to move up campaigns, add new menu items and expand delivery options. A loyalty program was also launched to attract customers.

The positive results also led the company to increase its projected growth forecast for the entire year to mid-to-high single-digit, from previous expectations to mid-single-digit growth.

"While the company upgraded its expectations, we believe Chipotle must continue to beat double-digit compositions to justify the current majority," said Mizuho Securities analyst Jeremy Scott.

Chipotle trades 52.18 times its 12-month earnings, while Yum! The marks are 26.07 times and McDonald's is 23.74 times.

Analysts also emphasized that higher commodity costs, loyalty redemptions and rising food costs would damage Chipotle's margins.

Jefferie's analyst Andy Barish said Chipotle is well positioned with its actions

"But the valuation keeps us on" hold "(rating)," he added.

(Reporting of Nivedita Balu in Bengaluru; Editing of Shailesh Cubes)


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