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 evie.liu@barrons.com
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July 22, 2026 17:41 ET (21:41 GMT)
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