CNBC Finance•
Taco Bell says it has removed lettuce linked to cyclosporiasis outbreak from its restaurants
Taco Bell has removed lettuce linked to a cyclosporiasis outbreak from restaurants, it said Friday.
The outbreak has currently affected more than 1,600 people across five states, according to the Centers for Disease Control and Prevention. The infection resembles a serious stomach bug and often begins showing up two to three weeks after people become infected by the parasite, according to the CDC. No deaths have been reported.
On Thursday, the agency said its investigation into the source linked the outbreak to shredded iceberg lettuce served at Taco Bell locations in Indiana, Kentucky, Michigan, Ohio and West Virginia. The U.S. Food and Drug Administration is working with the supplier to determine if the lettuce was sent elsewhere, as well.
"Based on ongoing conversations with public health officials, and out of an abundance of caution, Taco Bell worked swiftly to voluntarily remove the product from restaurants and the affected ingredient has been removed from our supply chain nationwide," Taco Bell said.
Taco Bell's parent company, Yum Brands, saw its stock sink nearly 7% over the past five days as the company grappled with the health scare. Other food companies that sell fresh lettuce also saw their shares drop, like salad chain Sweetgreen, which plunged nearly 13% this week, and fast casual chain Cava, which sank more than 3%. Shares of Sweetgreen and Cava rose more than 17% and about 2% on Friday, respectively, due to apparent relief that the CDC did not identify their ingredients as potential sources of cyclosporiasis.
While Taco Bell or other restaurant chains may take a temporary sales hit as headlines about the outbreak swirl, particularly in the states most affected by it, analysts said any dips in revenue or stock prices likely will not be prolonged. Even so, it remains to be seen whether the CDC identifies any other restaurant chains as possible sources of the outbreak.
According to reports, the affected lettuce at Taco Bell may be traced back to supplier Taylor Farms, which distributes the product to many restaurant chains and sells directly in most grocery stores.
Taylor Farms, the same company linked to the McDonald's E. Coli outbreak in 2024, said in a Friday statement that it has removed all iceberg lettuce sourced from central Mexico. The company added that none of its branded salads or kits are associated with the outbreak.
"While the FDA traceback is indicating a specific independent farm, which represents less than 1% of the U.S.'s iceberg lettuce supply, as the potential source of the outbreak, we have removed all iceberg lettuce from the region indefinitely," the company said.
Sweetgreen and other restaurant companies issued statements this week saying that they did not believe their ingredients were affected. The salad chain said it does not use iceberg lettuce on its menu.
"From the outset of the investigation, we have been in close contact with our suppliers to determine whether any ingredients in our supply chain have been identified as part of the investigation. To date, none have been," the company said.
Chipotle, which did not see as much stock movement this week, said in a Friday statement that shredded iceberg lettuce is not served at its locations, and it does not believe its ingredients are associated with the outbreak.
Taco Bell says it has removed lettuce linked to cyclosporiasis outbreak from its restaurantsRead More →