SerpApi.Org
A new Cyclospora outbreak is giving restaurant investors more reasons to worry.
The Food and Drug Administration said on Wednesday that it is started a new investigation on another outbreak of the diarrhea-causing cyclospora parasite that involves 72 illnesses. The agency hasn’t identified the food, supplier, geographic area, or restaurant involved.
The new cluster is separate from the five-state outbreak tied to shredded iceberg lettuce served at certain Taco Bell restaurants, which has led to 1,644 illnesses and 94 hospitalizations.
The new 72-case outbreak doesn’t currently involve Taco Bell—or any other restaurant. Still, the new cluster increases uncertainty around raw produce at a difficult moment for restaurant operators.
If investigators find the parasite in another widely used ingredient—such as leafy greens, herbs, berries, or fresh vegetables—consumers could avoid all restaurants selling salads out of caution.
The market is punishing these stocks already. Sweetgreen shares tumbled 7.2% on Wednesday, Chipotle Mexican Grill lost 3.4%, and Cava declined 2.1%.
Yum! Brands shares fell nearly 10% after Taco Bell was named, while traffic at the chain was down almost 30% on July 18 compared with its average Saturday traffic earlier this year, according to Placer.ai. Chipotle traffic declined 6%, while Sweetgreen and Cava fell nearly 5%.
The FDA previously identified lettuce from Taylor Farms de Mexico as the source for the five-state outbreak, but later said its test results were a false positive. The agency is also tracking several other smaller Cyclospora clusters.
Write to Evie Liu at [email protected]
