At Chipotle, those who asked for jalapeño got Salmonella

Chipotle Mexican Grill – the American Mexican food chain – had its best quarterly result in a long time at the end of last month, but a bacterium came to spoil the party. An outbreak of Salmonella that spread to 27 states in recent days, associated with the jalapeño served at Chipotle, brought back the specter of food safety that plagued the chain a decade ago.

In 2015, Chipotle had already faced outbreaks of norovirus and E. coli, and it took two years to normalize sales. Now, with the contamination of Taco Bell's lettuce also fresh in the consumer's mind, the company faces a new reputational crisis. Chipotle's stock began to fall on Tuesday, when the first news about the issue came out, and extended losses yesterday, after US agencies linked the outbreak to the jalapeño served by Mexican food chains in the US.

The stock has already fallen 11% this week and 21% in the last 12 months. At least 300 people were infected and 30 hospitalized with the bacterium that causes the infection called salmonellosis; more than 90% said they had eaten at Mexican food restaurants before getting sick, including Chipotle. The infected jalapeño, produced in Mexico and distributed by Coast Citrus Distributors, began to be withdrawn from the chain's stores on July 20, Barron's said.

But the damage was done. Chipotle's sales had already been impacted by the Taco Bell lettuce crisis last month, even without involvement in the case. Days later, the jalapeño crisis gives the company a new cold shower, which had reported sales and profits above consensus in the second quarter and raised its guidance for the year.

Still, some analysts expect Chipotle's good operational momentum to prevail in the long term, thanks to menu innovation initiatives, reward programs, and the implementation of catering services. Chipotle is worth $43 billion on the stock exchange.