Chipotle Detected 'unauthorized Activity' In Card Payment Network At Its Restaurants

By Tomi Kilgore Markets MarketWatch Pulse

Chipotle Mexican Grill Inc. disclosed Wednesday that it recently detected "unauthorized activity" on the payment-processing network that supports its restaurants. Although the fast-casual Mexican food restaurant operator said it has reported the issue to the authorities and payment card processors. The company believes the issue has been contained, and additional security measures have been taken, but the investigation into the matter is continuing. The probe is focused on card transactions at its restaurants from March 24, 2017 to April 18, 2017. The company said it is still unable to estimate the costs related to the issue, but expects costs associated with the probe will be covered by insurance. The disclosure follows Chipotle's first-quarter results released late Tuesday, in which profit, revenue and same-store sales all beat expectations. The stock, which rallied 2.5% in premarket trade, has soared 25% year to date through Tuesday, while the S&P 500 has gained 6.7%.

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