Sweetgreen Stock Rises Amid Taco Bell Outbreak
Sweetgreen’s stock jumped 15% on Friday, ending a rough four-day slump, as health officials linked an outbreak of explosive diarrhea to Taco Bell restaurants. This development helped to protect the salad chain’s reputation.
The popular fast-casual restaurant, recognized for its “slop bowls,” experienced a 21% increase in shares on Friday, marking its best intraday rise since August 2024.
Prior to this, stocks had sharply dropped nearly 26% from Monday through Thursday, fueled by investor concerns that customers would shy away from fresh produce amid reports of cysticercosis affecting thousands across various U.S. states.
The Centers for Disease Control and Prevention (CDC) and the Food and Drug Administration (FDA) reported late Thursday that the outbreak originated from shredded iceberg lettuce served at select Taco Bell locations in Indiana, Kentucky, Michigan, Ohio, and West Virginia.
Furthermore, Bloomberg revealed that California’s fresh produce supplier, Taylor Farms, is set to recall materials linked to the outbreak.
A representative from Sweetgreen stated, “Sweetgreen does not feature iceberg lettuce on its menu.” They emphasized that throughout the investigation, they have been in close communication with their suppliers regarding any potentially affected raw materials. So far, none have been identified.
While Sweetgreen’s stock is still down nearly 15% for the week, Taco Bell has also seen a decline of about 8% in the same timeframe, although it has started to recover after announcing the removal of lettuce from the impacted suppliers nationwide.
The FDA linked the outbreak to Taco Bell after more than 1,644 patients with crosspoliiasis reported dining at its establishments across five states.
Regulators are currently collaborating with an unnamed supplier, reportedly Taylor Farms, to assess whether the tainted iceberg lettuce has been distributed to other suppliers.
Cyclospora is a tiny parasite typically spread when contaminated food or water is consumed, according to the FDA. It can cause an intestinal illness known as cyclosporosis, which brings on symptoms including watery diarrhea, loss of appetite, weight loss, stomach cramps, bloating, gas, nausea, and fatigue. Interestingly, some individuals may carry the parasite without showing any symptoms.
It’s worth noting that the main concern with cysticercosis is dehydration, which can lead to more serious health issues. Those particularly vulnerable include individuals with weakened immune systems, children, and the elderly.
