Michigan Cyclospora Cases Top 8,100 as Taco Bell Pulls Lettuce Nationwide
YUM is trading near its 52-week low of $137.33 (8.4% above the low).
Summary
The cyclospora outbreak linked to Taco Bell has exploded to over 8,100 cases in Michigan alone, a sharp rise from 5,002 a week ago. Taco Bell has stopped using iceberg lettuce from supplier Taylor Farms nationwide, and Taylor Farms has pulled its central Mexico lettuce from shelves. Michigan's investigation has not pinpointed a single fast-food chain as the source, with 12% of patients having no clear link to lettuce or fast food. The outbreak is straining state resources due to federal funding cuts, and foot traffic to Taco Bell had already dropped as much as 18.9% in mid-July. This follows the July 17 health warning and the July 20 false-positive clarification, but the escalating case count and nationwide lettuce removal represent a material escalation of the crisis for Yum Brands.
At the time of this announcement, YUM was trading at $148.92 on NYSE in the Trade & Services sector, with a market capitalization of approximately $41B. 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.