Taylor Farms pulls iceberg lettuce from central Mexico linked to US parasite outbreak
YUM•Restaurant shares and related litigation
Taylor Farms supplied the slivered onions identified as the likely source of the 2024 E. coli outbreak linked to McDonald's Quarter Pounder burgers, which led to a recall.
Taco Bell's daily foot traffic on July 11 was down 5.8%, a few days after reports that Taco Bell pulled ingredients from some locations, according to data firm Placer.ai.
Foodborne illness outbreaks can weigh heavily on restaurant stocks. McDonald's faced scrutiny during a cyclosporiasis outbreak linked to salads in 2018, while Chipotle grappled with a series of E. coli and norovirus outbreaks that hurt sales, damaged consumer confidence and pressured its shares.
"The recent outbreak will likely dent (Taco Bell's) near-term same-store sales growth," said Ari Felhandler, an analyst at Morningstar, adding that some consumers would opt to dine at competitors outside the incident’s spotlight to mitigate perceived risk, even when prudent precautions are in place.




