In the wake of Chipotle's recent outbreaks of both E.coli and norovirus, Jim Cramer wanted to know how worried customers and investors should be.
At least 52 people were sickened after a multi-state E.coli outbreak was discovered to be linked to Chipotle. While health officials have not yet determined which ingredient caused the outbreak, the company has taken several measures to make Chipotle safer.
"We want to show all of our customers that the industry standards that we had been employing before — which are considered great standards — were not good enough. They were not good enough because something like this could happen," said founder and co-CEO Steve Ells.
"I will say though, that we can assure you today that there is no E. coli in Chipotle," Ells said. "We have thoroughly tested our food, we have thoroughly tested our surfaces and we are confident that Chipotle is a safe place to eat." He also confirmed that the company's new safety measures will put Chipotle well ahead of industry standards.
Since the saga began, Chipotle took responsibility for the issues, apologized and announced new industry-leading safety and food protocol to try to prevent a recurrence.
Looking at the stock, Cramer noted that Chipotle may have bottomed last week when it plunged down to $515 and did not dip any lower; the shares have climbed higher since.