Cyclospora Outbreak Tied to Taco Bell Lettuce Spreads to 20 States, 11,458 Cases
YUM is trading near its 52-week low of $137.33 (9.8% above the low).
Summary
The cyclospora outbreak linked to Taco Bell's iceberg lettuce has expanded to 20 states, with total cases rising to 11,458 and 495 hospitalizations. Michigan remains the epicenter with 14,510 cases and two deaths, both in patients with underlying conditions. This follows prior reports of 8,100+ cases in Michigan alone and a 18.9% drop in Taco Bell foot traffic in July. The outbreak is among the largest foodborne illness events in recent U.S. history and has shaken consumer confidence in fresh produce. The FDA is continuing onsite inspections in Mexico but is confident all recalled lettuce has been removed from the market. Taco Bell same-store sales still grew 7% in Q2 despite the outbreak, but the escalating case count and new deaths could pressure near-term traffic and sales.
At the time of this announcement, YUM was trading at $150.75 on NYSE in the Trade & Services sector, with a market capitalization of approximately $41.1B. The 52-week trading range was $137.33 to $170.14. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.