Consumer Fraud

Chipotle payment system hacked

Chipotle sign image courtesy Food Safety News 341x210 Chipotle payment system hackedChipotle Mexican Grill’s payment system was hacked and people who used their credit or debit card to purchase food at any of the nationwide restaurants between March 24 and April 18, 2017, are at risk of having their information stolen.

The data breach was announced during a quarterly earnings call with investors, and cast a dark shadow over the Chipotle’s earnings report. The company says that the security breach has been handled, but customers who have recently dined at the restaurant should check their bank statements for any suspicious activity.

“It’s crazy how such a large business can be hacked but it goes to show that no matter how secure a network is, there’s always going to be a way in,” University of Tampa senior Carissa Economos told The Penny Hoarder.

Despite the breach, Chipotle’s earnings report was largely positive. Shares rose in response to better-than-expected earnings – $1.60 compared to the $1.27 projected by Thomson Reuters. Revenues climbed to $1.07 billion, more than the $1.05 billion anticipated by analysts. Sames-store sales also jumped 17.8 percent compared to the expected growth of 14.9 percent, according to Street Account.

The earnings suggest that Chipotle is finally recovering after multiple foodborne illness scares in 2015, which took a bite out of the company’s revenue as well as its reputation. However, the security breach may leave some diners opting to visit elsewhere.

Sources:
The Penny Hoarder
CNBC