Chipotle E.Coli Scare Sends Shares Plummeting

A reported E.coli outbreak has sent shares in Chipotle tumbling in the US.

Seventeen cases of people falling ill from the bacterium have been linked to six of the Mexican fast food chain's restaurants in Seattle and Portland - and this number is expected to rise.

Chipotle has now decided to close all branches in both cities indefinitely "out of an abundance of caution", amounting to 43 stores in total.

"We offer our deepest sympathies to those that have been affected by this situation," a spokesman said.

In Monday morning's trading, Chipotle's share price fell by 4.6%, adding further woes to a company which has been hit by sluggish growth in recent months.

In a statement, Oregon's Health Authority said: "Officials want people who have eaten at a Chipotle between 14 October and 23 October, and become ill with vomiting and bloody diarrhoea, to see their healthcare provider and mention this outbreak."

Chipotle has distinguished itself by using fresh, unprocessed ingredients in its burritos and tacos – but although nutritious, it can raise the risk of foodborne illnesses.

This is the third food contamination scare to hit the chain since August.

In August, 80 people fell ill with norovirus after eating at a Chipotle restaurant in California.

A month later, it emerged that tomatoes used by 22 branches in Minnesota had infected dozens of customers with salmonella, with some people left hospitalised.

Analysts say the company, which has 1,931 stores, will suffer a blow to consumer confidence in the short-term – yet believe its image problem will blow over quickly.

Meanwhile, crisis management experts say Chipotle's decision to close the 43 restaurants in Washington and Oregon meant the chain "went above and beyond what they needed to do".