Blog Coverage: Chipotle Mexican Grill Posted Update on Cause of the Recent Data Breach at Most of its Locations
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LONDON, UK / ACCESSWIRE / May 31, 2017 / Active Wall St. blog coverage looks at the headline from Burritos and tacos restaurant chain Chipotle Mexican Grill, Inc. (NYSE: CMG) ("CMG") as the Company disclosed on May 26, 2017, the report with findings from the investigation of the payment card security incident reported on April 25, 2017. The report is the result of an investigation carried out by leading cyber security firms, law enforcement, and payment processors. Register with us now for your free membership and blog access at:
One of Chipotle Mexican Grill's competitors within the Restaurants space, Yum! Brands, Inc. (NYSE: YUM), reported on May 03, 2017, its financial results for Q1 2017 which ended on March 31, 2017. AWS will be initiating a research report on Yum! Brands in the coming days.
Today, AWS is promoting its blog coverage on CMG; touching on YUM. Get all of our free blog coverage and more by clicking on the link below:
On April 25, 2017, CMG released a statement informing its customers that the Company had detected "unauthorized activity" on its network that is used for processing of all payments made by customers for purchases made at its various restaurants. The Company has been specifically investigating credit card transactions at its locations for the period between March 24, 2017-April 18, 2017. The Company was able to take immediate steps to stop the "unauthorized activity" and also beef up its security measures.
In the meanwhile, the Company immediately sought the services of leading cyber security firms, law enforcement, and the Company's payment processor to start investigating the matter. The recent report is the result of this investigation.
The findings as per the report
The investigation revealed that hackers had used malware to steal customer card information from CMG's payment network. The malware was designed to access payment card data from cards used on point-of-sale (POS) devices used at CMG's restaurants. The POS were used at some of the Chipotle and Pizzeria Locale restaurants for the period between March 24, 2017, and April 18, 2017. The malware was designed to search for track data and read the information from the magnetic strips of the card when the card was being processed for payment using the POS device. The track data can contain sensitive information like the name of the cardholder, card number, expiry date, and internal verification code.
The investigation indicates that other customer information was not affected. The inquiry also revealed that not all locations were involved and the specific time frames changed from location to location. The list of Chipotle and Pizzeria Locale restaurant locations impacted by the security breach and the details of the specific time frames are available at CMG's website.
CMG has assured customers that it has removed the malware; however, the Company is still working with cybersecurity firms to enhance security measures.
Precautions for customers
CMG has advised its customers to remain alert to the possibility that their card could be affected and continue to monitor their card statements for any "unauthorized activity". In the event that any "unauthorized activity" or transactions are found, they should be brought to the notice of the card issuer. Most card payment rules have provision that cardholders are not liable to pay for any unauthorized charges reported in time. The cardholders need to follow any other steps that are necessary as indicated by their respective card issuing Companies when reporting such transactions.
About CMG
CMG was founded by Steve Ells and started off in Denver in 1993 as a single restaurant and today the restaurant chain operates more than 2,300 restaurants. The chain of fast-casual, fresh Mexican food restaurants specializes in burritos, tacos, burrito bowls, and salads and is present in the United States, United Kingdom, Canada, Germany, and France.
Stock Performance
Chipotle Mexican Grill's share price finished yesterday's trading session at $475.70, marginally falling 0.93%. A total volume of 606.30 thousand shares exchanged hands. The stock surged 13.60% in the last three months, 15.95% in the past six months, and 6.80% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 26.07%. The stock is trading at a PE ratio of 144.68 and currently has a market cap of $13.67 billion.
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