Chipotle Stock Holds Steady Amid Expanded Jalapeño Recall

Chipotle Mexican Grill's stock held steady near $33.42 on Monday after the company received a boost from switching to a new jalapeño supplier in July, despite an expanded recall of jalapeños distributed by H-E-B that covered over 50 items.

The recall was extended due to contamination with Salmonella Javiana, which has been linked to 345 cases and led to the hospitalization of 36 individuals. However, no deaths have been recorded.

Chipotle changed suppliers on July 20, but some analysts expressed concerns that the incident could impact traffic and earnings. The company's second-quarter revenue rose 9.3% to $3.3 billion, with comparable sales increasing 2.2%, driven by a 1.0% uptick in transactions.

Despite the recall, investors remain optimistic about Chipotle's prospects, with 21 out of 24 analysts on Google Finance recommending 'buy' ratings and a consensus price target of $44.96 representing a 34.5% premium to the current trading price.