Ask Matt: Is Chipotle a sick stock?

Q: Is Chipotle a sick stock?

A: There's nothing like an E. coli outbreak to rattle a restaurant stock. Shares of Chipotle (CMG) are making investors sick to their stomachs as evidence shows the food-borne illness issue is broader than expected.

Shares of the burrito chain sank $75.32, or 12%, to $536.19 Friday after The Centers for Disease Control and Prevention warned cases of E. coli among Chipotle customers has spread to six states. Originally, the problem was thought to be mostly in the Pacific Northwest and Minnesota, but the CDC added California, New York and Ohio to the list of states with cases.

The latest news of the outbreak returns the concern to the front burner of things for Chipotle investors to worry about. The company's stock is now down 22% this year and has lost nearly a third of its value from its highest level over the past 52 weeks.

Analysts are sticking with the stock for now - betting that Chipotle will make the needed food safety improvements to turn this into a temporary embarrassment. Analysts are calling for the stock to be worth $740.60 a share in 18 months, which would be a 38% jump from current levels. Despite the current issues, Wall Street still thinks Chipotle customers will line up for their tacos and push the company's revenue up 14% in 2016 to $5.4 billion. Adjusted profit is expected to jump 18% in 2016 to $20.33 a share.

Much will depend on whether Chipotle can quickly clean up its mess.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.