Chipotle Outbreak Leads to Federal Subpoena

Chipotle Outbreak Leads to Federal Subpoena

Chipotle Mexican Grill Inc (CMG.N), under scrutiny for months over outbreaks of foodborne illness across several U.S. states, said on Wednesday it was served with a subpoena in a federal criminal probe linked to a norovirus case in California last year.

Shares of the burrito chain fell more than 5 percent to $424.95, their lowest in more than two years, as the Denver-based company grapples with a wave of norovirus and E. coli outbreaks that have sickened customers and battered sales.

The company in a filing also projected a 14.6 percent plunge in fourth-quarter same-store sales, compared with a previously estimated 8-11 percent drop, which would be the first such decline in the company’s history.

Chipotle said it received the subpoena as a part of a criminal investigation by the U.S. Department of Justice and the Food and Drug Administration. A federal grand jury will decide whether to press charges in the case.

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