00:00So the jalapenos had been linked by public health authorities to some salmonella cases.
00:06I should say, you know, right off the bat for yours and everyone's sort of peace of mind
00:12that Chipotle pulled the jalapenos pretty quickly.
00:15And health authorities have said that they don't have ongoing concerns about people eating
00:19at the restaurants.
00:20But I think what really stands out here, and I can share more if you want, is just basically
00:25how quickly the company was able to really zero in on jalapenos as the culprit here.
00:30Did that result in positivity for the stock?
00:32Because I'm looking here year to date down 14 percent, one year return down about 24 percent.
00:40Look, like some of this information has come out very, you know, slowly over the past week.
00:46It's still pretty recent.
00:48And so basically last week we were first to report that Chipotle had pulled the jalapenos
00:53because of the salmonella outbreak.
00:55You know, by then, you know, they had already done it a few days ago and public health authorities
01:00were like, yeah, we don't have ongoing concerns.
01:02But of course, like, you know, when headlines like that come out, you know, people do get
01:07spooked.
01:07And when we published that story, the stock dropped as much as 9.7 percent that day.
01:12I mean, it's it's recovered a little bit.
01:14But, you know, sometimes this information takes a little bit to to sort of, you know,
01:20spread in terms of people and health authorities feeling comfortable saying we don't have any
01:26more concerns.
01:26Go back to the restaurant, basically.
01:28Daniela, this is a big topic, big issue, big risk for restaurants in general, chains,
01:33particularly publicly owned chains, that being food safety systems protocols.
01:38Talk to us about what Chipotle does there.
01:41Of course.
01:42So, you know, you might all remember that, you know, between 2015, 2018, Chipotle had
01:47a series of issues with mostly with food handling.
01:50And so really, they've stepped up their game and they've invested a lot of money basically
01:54into technology that acts as almost like a digital map of their supply chain.
01:58So basically, the company can go into the system and really look up like where every ingredient
02:02has been, like, you know, where it moved from the distributor to a distribution center
02:07to the restaurant.
02:07And so, you know, what the company was able to do in this case is they heard from the
02:11state of Minnesota, like, hey, we think that something in your guacamole is making people
02:16sick.
02:17And based on the pattern of where the illnesses were happening and the restaurants that were
02:21affected, the company was able to say, like, we think that the problem is the jalapenos
02:27in the guacamole.
02:28And then they were able to pull them.
02:29And so, you know, it's an example of, you know, many large restaurant chains have invested
02:34in these types of systems because, you know...
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