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Taco Bell Gets Unexpected Boost Amid Cyclosporiasis Outbreak

Taco Bell Gets Unexpected Boost Amid Cyclosporiasis Outbreak

Summary

Taco Bell has been linked to a multi-state outbreak of cyclosporiasis caused by contaminated lettuce, leading to thousands of infections and several lawsuits. Despite declining restaurant visits, Taco Bell has increased app usage through special deals, and its parent company’s stock has fallen due to the outbreak’s impact.

Key Facts

  • The CDC identified Taco Bell’s shredded iceberg lettuce as a source of cyclosporiasis infections in several states.
  • Over 6,700 lab-confirmed cases and about 11,500 suspected cases have been reported nationwide since May.
  • The outbreak is linked to lettuce supplied by Taylor Farms from central Mexico, which was recalled in July.
  • Taco Bell removed the affected lettuce from its restaurants on July 17.
  • The company is facing lawsuits from customers who became ill after eating at Taco Bell.
  • Foot traffic at Taco Bell locations dropped by 21% on July 23 compared to the year’s average.
  • Taco Bell used $1 deals to promote purchases through its app, which rose in popularity during the outbreak.
  • Yum! Brands, the parent company, saw its shares fall about 8% in July before reporting quarterly earnings.
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