• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it

2

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

3

Iran strikes 85 U.S. military sites in the Gulf, sparking a global selloff in stocks and a spike in the price of oil

1

Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it

2

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

3

Iran strikes 85 U.S. military sites in the Gulf, sparking a global selloff in stocks and a spike in the price of oil
RetailChipotle

How Chipotle’s E. Coli Outbreak Has Brought the Chain Down to Earth

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
April 29, 2016, 7:47 AM ET
Chipotle Mexican Grill founder and CEO Steve Ells speaks during an interview with the Associated Press in a Chipotle restaurant on Tuesday Dec. 15, 2015, in Seattle. Ells was visiting restaurants in the Pacific Northwest to discuss new food safety protocols with employees after an E. coli outbreak sickened 50 people in the Northwest. (AP Photo/Stephen Brashear)
Chipotle Mexican Grill founder and CEO Steve Ells speaks during an interview with the Associated Press in a Chipotle restaurant on Tuesday Dec. 15, 2015, in Seattle. Ells was visiting restaurants in the Pacific Northwest to discuss new food safety protocols with employees after an E. coli outbreak sickened 50 people in the Northwest. (AP Photo/Stephen Brashear) Stephen Brashear — AP
Add Fortune on Google for similar content.

In its struggle to win back customers after last year’s food safety issues, Chipotle Mexican Grill (CMG) is embracing strategies it once rejected.

Executives at the formerly high-flying burrito chain announced plans this week to expand its menu, explore a loyalty program, spend heavily on traditional advertising and potentially put the brakes on some new restaurant deals – moves embraced by its competitors but not previously by Chipotle.

Successful brands such as Starbucks Corp and Panera Bread Co used similar strategies after they saw slowdowns in once robust sales.

“Chipotle is just falling in line with the way the rest of the industry operates,” said Darren Tristano, president of food service consulting firm Technomic.

After years of breakneck growth, now “Chipotle is just your average restaurant company,” said Hedgeye Risk Management restaurant analyst Howard Penney.

Before Chipotle was tied to E. coli, salmonella and norovirus outbreaks last year, it could raise prices with little to no pushback from diners. It also kept finding new ways to squeeze more sales and profits from its restaurants, fueling outsized share gains.

This week the chain posted its first-ever quarterly loss as millions of dollars in free food giveaways failed to lure back enough paying customers to satisfy Wall Street.

Shares are trading down more than 40 percent from their all-time high of over $742 on July 1.

Chipotle executives appear willing to step outside their comfort zone to fix what ails the chain, “but we also question whether (Chipotle) will ever regain its lost luster,” Deutsche Bank analyst Brett Levy said in a note.

The company plans to put chorizo on the menu, only its second protein addition in more than 20 years, and will experiment with loyalty programs, something it once dismissed as unnecessary discounts for frequent customers.

Chipotle is also investing heavily in traditional advertising focused on food quality, a major shift from is former dependence on offbeat marketing projects, such as quirky short promotional films.

After adding about 200 restaurants annually in recent years, Chipotle is now carefully reviewing new restaurant projects it had previously green-lighted, co-Chief Executive Monty Moran said.

“We might walk away from some of those deals,” Moran said on an earnings conference call on Tuesday.

About the Author
By Reuters
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

The Best Rowing Machines (2026): Trainer Tested and Approved
HealthDietary Supplements
The Best Rowing Machines (2026): Trainer Tested and Approved
By Christina SnyderJuly 8, 2026
1 hour ago
‘Even shaving one minute off an EMT trip for severe cases can generate huge economic benefits.’ Well, New York’s congestion pricing did just that
North AmericaNew York City
‘Even shaving one minute off an EMT trip for severe cases can generate huge economic benefits.’ Well, New York’s congestion pricing did just that
By Catherina GioinoJuly 8, 2026
2 hours ago
Jonathan Bensamoun (right) sits on a stool next to his German Shepherd
InnovationPet Tech
Exclusive: Fi is bringing Starlink satellite technology to dog collars
By Lily Mae LazarusJuly 8, 2026
3 hours ago
Fleek cofounders Sanket Agarwal and Abhi Arora pictured reclining on a pile of vintage clothing.
Startups & VentureVenture Capital
Exclusive: Fleek, an online marketplace connecting vintage clothing wholesalers and retailers, raises $25 million in new funding
By Jeremy KahnJuly 8, 2026
13 hours ago
Chinese tea chain’s $1.5 million trademark infringement loss to Louis Vuitton sparks fight over who owns a flower pattern
AsiaChina
Chinese tea chain’s $1.5 million trademark infringement loss to Louis Vuitton sparks fight over who owns a flower pattern
By The Associated Press and Chan Ho-HimJuly 7, 2026
1 day ago
Swimmer bitten in suspected shark attack at Jones Beach, prompting brief closure as the U.S. battles record-breaking heat
North AmericaNew York
Swimmer bitten in suspected shark attack at Jones Beach, prompting brief closure as the U.S. battles record-breaking heat
By The Associated PressJuly 7, 2026
1 day ago

Most Popular

Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
Success
Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
By Preston ForeJuly 6, 2026
2 days ago
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
AI
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
By Marco Quiroz-GutierrezJuly 5, 2026
3 days ago
Iran strikes 85 U.S. military sites in the Gulf, sparking a global selloff in stocks and a spike in the price of oil
Newsletters
Iran strikes 85 U.S. military sites in the Gulf, sparking a global selloff in stocks and a spike in the price of oil
By Jim EdwardsJuly 8, 2026
10 hours ago
China’s birth rate just hit its lowest point since 1949—and Trip.com cofounder James Liang thinks that’s a threat to innovation
Asia
China’s birth rate just hit its lowest point since 1949—and Trip.com cofounder James Liang thinks that’s a threat to innovation
By Nicholas GordonJuly 7, 2026
2 days ago
Presidents aren't supposed to pick winners, former White House ethics lawyer says. Trump keeps choosing Dell
Politics
Presidents aren't supposed to pick winners, former White House ethics lawyer says. Trump keeps choosing Dell
By Mia OsmonbekovJuly 7, 2026
1 day ago
Current price of oil as of July 7, 2026
Personal Finance
Current price of oil as of July 7, 2026
By Joseph HostetlerJuly 7, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.