Sweetgreen, Chipotle And More Stocks Fall During Cyclospora Outbreak

Stocks of several fast food and fast casual eateries fell on Wednesday as investors appear concerned about the ongoing cyclospora outbreak possibly linked to ingredients like lettuce—with Sweetgreen falling a sharp 5.6%, even though no cases have been linked to the salad chain so far. Health officials have not publicly linked the outbreak to any of the restaurants as of Wednesday, and haven’t identified the source of the parasite.

The stock of Sweetgreen, whose menu is centered around raw vegetables some are eschewing during the outbreak, has now tanked over 24% in the last month. Taco Bell pulled some items from locations in select restaurants, the chain told Bloomberg on Tuesday, and stopped serving lettuce at some franchises in Michigan—the state reporting the largest outbreak in the parasite, which can cause explosive diarrhea. Share prices for Taco Bell’s owner Yum Brands also fell 3.3% on Wednesday, and is down 7.4% over the last five trading sessions. Chipotle’s stock price fell 4.8% on Wednesday, although shares remain up over the last six trading sessions.

In a statement sent to Forbes, Chipotle chief corporate affairs and food safety officer Laurie Schalow said the company didn’t believe its ingredients were associated with the outbreak, but would be “monitoring the situation closely and evaluating any new information as it becomes available.”

Health officials have not publicly associated any of the restaurants with the ongoing outbreak, though sources told the Washington Post authorities were investigating Taco Bell, and restaurants in Detroit reportedly pulled ingredients like lettuce, guacamole, cilantro and pico de gallo from their menus.

Cyclospora is a microscopic parasite that causes cyclosporiasis, an intestinal illness primarily associated with watery diarrhea, fatigue and loss of appetite, according to the Centers for Disease Control and Prevention. The illness is not usually spread person-to-person, but can spread when people consume food contaminated with the parasite. Authorities are still investigating the outbreak and have not determined the source as of Wednesday.

“Early information has shown lettuce as a common product that regularly comes up during the investigation,” Dr. Natasha Bagdasarian, Michigan’s chief medical executive, said in a statement on Monday.

That’s how many cyclosporiasis cases have been reported in Michigan, according to public health authorities in the state. These include 44 cases that have required hospitalization. The CDC has confirmed a total 1,645 cases of cyclosporiasis in the U.S. as of Tuesday, and notes more than 5,100 cases require further investigation to confirm the illness.