CMG Stock Posts Worst Day In Nine Months As Chipotle Pulls Jalapenos Over Salmonella Probe

Chipotle Mexican Grill has pulled jalapeños from several Minnesota restaurants following a state Salmonella outbreak that has infected more than 100 people.

• Chipotle proactively removed and replaced jalapeños across affected Minnesota locations after learning the peppers might be linked to regional Salmonella infections. 
• Company shares plunged by as much as 8.5% in New York following news of the investigation. 
• Out of 84 infected individuals interviewed by health officials, 75 said they had eaten at Chipotle before falling ill. 

Chipotle Mexican Grill Inc.(CMG) has reportedly pulled jalapeños from several of its locations across Minnesota after state health authorities linked the produce to a local salmonella outbreak.

A spokesperson for the Minnesota Department of Health told Bloomberg News that 110 people in the state have fallen ill in the outbreak. Of the 84 infected individuals available for questioning, 75 reported eating at a Chipotle location prior to getting sick. Those affected ate at the restaurants between June 14 and July 14.

Following the news, Chipotle shares tumbled 8.5% on Tuesday, marking the stock's sharpest intraday decline since October 2025.

Swift Preventive Measures

In response to the health inquiry, Chipotle removed the suspect jalapeños from all stores that received the shipment and brought in replacement produce from alternate suppliers, Bloomberg reported.

"Chipotle proactively removed the jalapeños and replaced them with products from different growers upon learning of a potential Salmonella outbreak in the supply chain impacting several food service retailers," Laurie Schalow, Chipotle’s chief corporate affairs and food safety officer, said in a statement, according to Bloomberg.

Because the fast-casual chain took immediate action to remove the peppers, Minnesota health officials noted they are no longer concerned about Chipotle's current operations. State officials said the restaurant chain fully cooperated at every stage of the probe by sharing operational records and implementing swift measures to stop further spread.

Broader Produce Traceback

Health authorities warned that the broader salmonella outbreak may extend beyond Chipotle. Investigations suggest individuals have fallen ill after dining at other restaurant chains, and health officials cautioned that the outbreak could persist if contaminated produce remains in circulation elsewhere.

Federal health officials are actively leading a traceback investigation into produce, focusing on jalapeños potentially contaminated with Salmonella javiana. The U.S. Food and Drug Administration (FDA) publicly posted its investigation into the outbreak on July 22, noting 212 total linked cases across multiple jurisdictions.

The incident lands amid a challenging period for produce safety across the restaurant sector. Health authorities are simultaneously managing a multi-state cyclospora outbreak linked to shredded lettuce supplier Taylor Farms, which has triggered recalls across 27 states and affected other major chains, including Taco Bell.

History Of Food Safety Struggles

The current investigation touches on historical vulnerabilities for the burrito chain. Chipotle previously endured a string of high-profile food safety crises between 2015 and 2018 involving E. coli, norovirus, and salmonella. Those incidents led to sharp declines in customer traffic, a plummeting stock price, and the eventual departure of founder and then-CEO Steve Ells.

In 2020, Chipotle agreed to pay a record $25 million criminal fine to resolve federal charges stemming from earlier outbreaks that affected more than 1,100 customers. Federal prosecutors noted that those earlier cases stemmed primarily from inadequate store-level safety protocols rather than tainted raw ingredients.

According to the Centers for Disease Control and Prevention (CDC), salmonella accounts for approximately 1.35 million infections annually in the United States. Infections spike during warm summer months when temperature conditions foster rapid bacterial growth, causing symptoms such as severe stomach cramps, fever, and watery diarrhea.

CMG Stock: Retail View 

Retail sentiment on Stocktwits was ‘extremely bullish’ with ‘high’ message volumes. Retail chatter on the stock has jumped 33% over the previous session. 

CMG stock has lost 7.5% year-to-date.

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