In 2015, Chipotle experienced a series of E-Coli outbreaks that significantly impacted their profits and shareholder value. The company's profits declined by 95% in the following year. This led to a loss of about $8 billion in shareholder value. Additionally, Chipotle had to pay $25 million in government fines. The primary reason for this was Chipotle's inadequate risk management when they transitioned to a decentralized vendor management system. This left the restaurant chain vulnerable to E-Coli infections from individual locations that improperly prepared their produce.
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