Shares of Chipotle Mexican Grille are now down more than 25 percent in the past three months after the company has announced it expects its first quarterly same-store sales decline as a public company. The company reports that sales have collapsed by as much as 20 percent following a recent E. coli outbreak at its restaurants.

While the impact of the outbreak is certainly severe, Chipotle shareholders can look to a close restaurant rival for proof that the negative press and customer fears surrounding this type of outbreak can be overcome in the long-term.

Taco Bell Outbreak

Back in 2006, Yum! Brands, Inc. YUM 2.24%‘s Taco Bell franchise experienced a similar outbreak of E. coli that resulted in at least 71 customer illnesses in four different states in the Northeast. Taco Bell even temporarily closed all of its restaurants in Philadelphia during the outbreak. Yum Brands share price fell 3.5 percent during December 2006 as a result of market fears over the lasting impact of the outbreak.

Rebound

Taco Bell certainly faced…

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