Taco Bell pulls lettuce tied to cyclosporiasis outbreak as health scare spreads across restaurant stocks

Taco Bell pulls lettuce tied to cyclosporiasis outbreak as health scare spreads across restaurant stocks

Taco Bell said Friday that it has taken lettuce linked to a cyclosporiasis outbreak out of its restaurants, after federal health officials traced the source to shredded iceberg lettuce served at locations in Indiana, Kentucky, Michigan, Ohio and West Virginia.

According to the Centers for Disease Control and Prevention, more than 1,600 people across five states have been affected so far. The infection can resemble a severe stomach illness and typically appears two to three weeks after exposure. No deaths have been reported. Taco Bell said it moved quickly to remove the product from stores and that the affected ingredient has now been removed from its supply chain nationwide.

Broader impact on restaurant and food stocks

The scare has rippled beyond Taco Bell’s restaurants. Yum Brands, Taco Bell’s parent company, saw its shares fall nearly 7% over the past five days as the issue developed. Other companies that rely on fresh lettuce also came under pressure, including Sweetgreen and Cava, though both recovered some ground on Friday after the CDC did not identify their ingredients as possible sources.

Analysts said the episode could weigh on traffic and sales in the short term, especially in the states most directly affected, but they do not expect a lasting hit based on how similar food-safety incidents have played out before. The FDA is also working with the supplier to determine whether the lettuce was distributed elsewhere. Reports have pointed to Taylor Farms as the supplier involved, and the company said it removed all iceberg lettuce sourced from central Mexico while noting that its branded salads and kits are not tied to the outbreak. Sweetgreen and Chipotle separately said they do not believe their ingredients are involved.

Source: cnbc.com

Tom P
Tom loves sports so much but prefers watching other people do it. He prefers not to share what teams he's supporting but he is willing to admit that Lebron James is the king. Other than sports, he's interested in stock markets and food.