Chipotle pulls jalapenos from some locations after salmonella investigation. Here's what to know.

By Bill Peters

While Chipotle's stock slid on Tuesday, it said health investigators had 'no ongoing concerns' with the chain after it removed the jalapenos

Chipotle said Tuesday that it "proactively removed" jalapenos from some restaurants.

Chipotle Mexican Grill on Tuesday said it had stopped serving jalapenos in some restaurants following an investigation by Minnesota health authorities into a salmonella outbreak - the latest precaution from a big restaurant chain during a summer marked by food-poisoning concerns.

Shares of Chipotle (CMG) finished 9.7% lower on the day. The stock was up less than 1% in Tuesday's extended session.

Carlota Medus, senior epidemiologist supervisor at the Minnesota Department of Health's foodborne-diseases unit, said in a statement that the department had identified 110 cases of salmonella javiana that were part of the outbreak. Among the 84 people officials were able to interview, 75 reported eating at Chipotle from June 14 to July 14.

Most of the people had eaten between June 24 and July 2, Medus noted, while others said they had eaten at "a variety of other Mexican-style restaurants."

Medus said that other states were contributing to the investigation, and that the food that made people sick was served at other restaurants besides Chipotle, based on the evidence gathered so far. The Food and Drug Administration has launched a traceback investigation related to the matter, with a focus on jalapenos as well as other items.

The Minnesota health official said Chipotle had provided records and other details about its ingredients and had taken other steps to contain the outbreak.

"It is too soon for us to know if the outbreak is ongoing," Medus said. "Given the measures Chipotle put in place, we are not concerned about Chipotle, but it is possible that the outbreak is ongoing if the contaminated food item is being served elsewhere."

She added: "We do expect the case count to increase even if the illnesses occurred a couple of weeks ago, since it takes us a while to detect cases in surveillance."

Symptoms of salmonella include diarrhea, fever and stomach cramps, according to the Centers for Disease Control and Prevention. Most people recover without treatment, according to the agency.

The news arrived as the U.S. continues to deal with its largest-ever cyclospora outbreak, which has sickened thousands of people, particularly in Michigan, and been linked to two deaths of people with underlying health conditions. The outbreak has weighed on foot traffic at chains like Chipotle and Yum Brands' Taco Bell, the latter of which had been an initial focus for investigators.

Shares of Yum Brands (YUM) finished 0.8% lower on Tuesday.

Chipotle, in a statement on Tuesday, echoed some of Medus's remarks. It said that Minnesota investigators had "no ongoing concerns with Chipotle," and that the company was cooperating with health authorities.

The chain said that it identified jalapenos from a common lot and the restaurants they were sent to. It added that it "proactively removed the jalapenos from our restaurants and replaced them with product from different growers."

A Chipotle representative, when reached for more details, said the jalapenos in question were sent to several food-service retailers across "multiple" states. Chipotle said it removed the peppers from all the restaurants where they were sent, as well as Minnesota locations.

In an earnings call last week, Yum Brands said sales were returning in the wake of the cyclospora outbreak, helped by $1 deals on some of Taco Bell's lettuce-free items. Chipotle last week said there had been "a softening" in consumer foot traffic through the latter half of July, but raised its full-year sales forecast nonetheless.

The outbreaks have emerged during a difficult year for restaurants, as diners remain budget-conscious amid cost-of-living increases. Restaurants have tried to counter the weaker demand with value deals.

Chipotle's stock was 8.6% lower so far this year as of the close of trading Tuesday. Shares were trading at around $34, well down from highs of more than $65 hit in 2024.

-Bill Peters

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08-04-26 1754ET