Michigan Cyclosporiasis Cases Surge to 5,002, Taco Bell Outbreak Tops 1,600
YUM is trading near its 52-week low of $137.33 (12% above the low).
Summary
Michigan health officials now report 5,002 cyclosporiasis cases, a jump of 690 in one day, with 102 hospitalizations. Nationwide, the CDC and FDA link 1,644 infections and 94 hospitalizations to shredded iceberg lettuce served at Taco Bell, owned by Yum Brands. The outbreak is larger and more widespread than prior years, and supplier Taylor Farms is now recalling products. This follows earlier reports identifying the supplier and Taco Bell's voluntary lettuce removal, but the sharp rise in case counts and hospitalization figures represents a material escalation of the public health and liability risk for Yum. The scale of the outbreak and direct link to Taco Bell could pressure sales and invite regulatory scrutiny, dealing a blow to Taco Bell's fast-food stardom.
At the time of this announcement, YUM was trading at $153.44 on NYSE in the Trade & Services sector, with a market capitalization of approximately $42.3B. 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.