Cyclosporiasis Outbreak Has Impacted Restaurant Traffic, Stocks at Taco Bell and Other Restaurants: Report

Foot traffic and stock prices have been impacted at restaurants, even some that are not linked to the outbreaks

NEED TO KNOW

• Lettuce previously sold at Taco Bell in five states was linked to cyclosporiasis outbreaks causing “explosive” diarrhea, per the FDA and CDC
• Media reports indicate that stocks for some chains have fallen and some restaurant foot traffic has declined amid the outbreak investigation
• The CDC is investigating over 7,000 cases of the illness, which can last weeks and cause severe gastrointestinal symptoms

Cyclosporiasis outbreaks have reportedly impacted foot traffic at some of America’s popular food chains. 

The outbreaks of the parasitic illness that causes “explosive” diarrhea have contributed to decreased foot traffic at Taco Bell, whose former lettuce provider was linked to the outbreaks, along with other chains who have not been linked to the outbreaks, CNN reported.

The U.S. Food and Drug Administration (FDA) and Centers for Disease Control (CDC) linked shredded iceberg lettuce previously sold at Taco Bell locations in Indiana, Kentucky, Michigan, Ohio and West Virginia to the outbreaks.

“Do not eat shredded iceberg lettuce from Taco Bell locations in Indiana, Kentucky, Michigan, Ohio, and West Virginia,” the CDC said in a July 16 announcement.

The CDC and FDA have linked an outbreak to Taylor Farms, a salad supplier, which proceeded to remove iceberg lettuce sourced from central Mexico from the U.S. market and recalled its iceberg lettuce products. Despite a false positive test of a lettuce sample from Taylor Farms, federal agencies continue to link the outbreak to the supplier in their ongoing investigation, which they said may implicate other brands or restaurants as well.

Taco Bell said it removed affected lettuce from Taylor Farms completely on July 17.

“We took this action to ensure our guests can enjoy their Taco Bell favorites safely,” the chain said in a statement shared with PEOPLE.

CNN reported that data from mobile data analytics firm Placer.ai showed that on July 15, the day after The Washington Post reported that Taco Bell was being investigated to determine if it was linked to the outbreaks, traffic to the chain fell 16.9% relative to average daily numbers this year.

Following the FDA and CDC officially linking shredded iceberg lettuce sold at Taco Bell in five states to the outbreaks of cyclosporiasis on July 16, foot traffic was down 19%, CNN reported.

Additionally, Bloomberg reported that shares of Yum! Brands, the parent company of Taco Bell, fell about 6% from July 13 to July 17. The outlet said the shares rose after the company announced the removal of the Taylor Farms lettuce.

CNN found that overall, fast casual and quick service restaurants have declined 1.1% and 1.9%, respectively, relative to daily averages on July 17.

The outlet also found that restaurants like Panera, Chipotle and Subway, none of which have been linked to the outbreaks by the CDC or FDA, have experienced decreased traffic as well, per Placer.ai. 

Per the outlet, Subway’s traffic fell 19.2% relative to its daily average on July 16, and Chipotle and Panera’s traffic each decreased by under 10% on July 16 and July 17.

Outlets have reported that stocks at some chains have also fallen amid the outbreaks.

According to Barron’s, stock in Yum! Brands fell almost 10% last week and was flat on Monday, July 20. The outlet reported that Chipotle’s share prices went down by 4.4 % on July 20, which the outlet says indicates shareholders’ assumptions that consumers will avoid raw produce amid the outbreaks.

The outlet further reported that shares in Sweetgreen, which has not been linked to the outbreaks by the CDC or FDA, fell 8.1% on Monday, July 20 and experienced a selloff the previous week before recovering on Friday, July 17, after saying it doesn’t use iceberg lettuce or ingredients marked by the CDC and FDA investigation.

Bloomberg reported that Sweetgreen’s stock fell 26% between July 13 and 16 before picking up about 21% on Friday, July 17. The outlet said the stock decreased 12% over the week.

Sweetgreen told Bloomberg that, based on conversations with its suppliers, none of its ingredients are part of the investigation.

PEOPLE reached out to Panera, Subway, Taco Bell, Chipotle and Sweetgreen for comment. Only Taco Bell was linked by the FDA and CDC to the outbreaks.

Chipotle previously told PEOPLE in a statement regarding the outbreak that the chain is “aware” of the investigation.

“At this time, we don’t believe the ingredients we source are associated. We are monitoring the situation closely and evaluating any new information as it becomes available,” the statement said. “The health and safety of our guests and team members is our highest priority.”

Panera told PEOPLE it has not been notified of impacts to its supply chain or had to remove items amid the outbreaks.

The CDC is currently investigating over 7,000 cases of cyclosporiasis, while noting that “the true number of sick people in this multistate outbreak is likely higher than the number reported.”

The Michigan Department of Health and Human Services (MDHHS) alone reported 6,571 cases as of July 21.

Per the CDC, the parasitic illness, which can last from a few days to a month or more, includes symptoms like “watery diarrhea, fatigue, and loss of appetite.”

Officials say consumers can reduce the risk of contracting the illness by washing their hands thoroughly and cooking produce to at least 158 degrees Fahrenheit.

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