Newport Beach-based Chipotle Mexican Grill Inc. (NYSE: CMG) will pay a $25 million fine and tighten compliance practices in response to a U.S. Department of Justice investigation into food safety issues at the chain.
The agreement, reported in a Tuesday filing with the Securities & Exchange Commission, resolves an earlier disclosed investigation by the U.S. Attorney’s Office for the Central District of California and Department of Justice’s Consumer Protection Branch looking into foodborne-related illnesses at a number of Chipotles between 2015 and 2018.
The $25 million fine will be broken down into a $10 million payment to be made by June 1 and three payments of $5 million apiece due every 30 days therafter.
Chipotle has agreed to adhere to all food safety laws, with the Justice Department agreeing to dismiss the company’s two misdemeanor counts of selling food not up to legal standards and to not prosecute at the end of a three-year period.
The company’s shares were trading down 3.5% Tuesday to a market cap of $22 billion.