YUM, WMT Stocks In Focus: CDC Declares Cyclospora Outbreak Over After Nearly 13,000 Cases

The outbreak, which was due to contaminated lettuce, resulted in 570 hospitalizations and two deaths across 21 states.

• The outbreak was linked to processed iceberg lettuce supplied by Taylor Farms de Mexico.
• Yum Brands-owned Taco Bell had sourced shredded iceberg lettuce from Taylor Farms de Mexico and used it across stores in five states.
• Taylor Farms recalled all iceberg lettuce sourced from central Mexico on July 17.

Yum Brands (YUM) and Walmart (WMT) are in focus after U.S. health officials declared an end to a major Cyclospora outbreak linked to iceberg lettuce that affected nearly 13,000 people.

The Centers for Disease Control and Prevention (CDC) said on Friday that the outbreak had ended after infections declined significantly and the affected lettuce disappeared from stores and restaurants. The outbreak resulted in 12,883 cases across 21 states, 570 hospitalizations and two deaths.

Cyclospora is a parasite that can contaminate food or water and cause an intestinal illness called cyclosporiasis. Symptoms include diarrhea, stomach cramps, nausea, and fatigue.

Cyclospora Outbreak Traced To Mexico

According to investigations by the CDC, public health and regulatory officials in several states, and the U.S. Food and Drug Administration (FDA), the outbreak was linked to processed iceberg lettuce supplied by Taylor Farms de Mexico.

The earliest illness onset tied to the Cyclospora outbreak was May 13, while Taylor Farms recalled all iceberg lettuce sourced from central Mexico on July 17. At its peak before the recall, more than 1,000 infections occurred in a single day. That fell to fewer than two per day on average in August, according to the CDC.

How YUM And WMT Are Tied To The Outbreak

According to the investigations, Yum Brands-owned Taco Bell had sourced shredded iceberg lettuce from Taylor Farms de Mexico and used it across stores in Indiana, Kentucky, Michigan, Ohio, and West Virginia. Taco Bell stopped using lettuce from the supplier on July 17.

Taylor Farms’ recall also included iceberg salad and shredded lettuce products sold under Walmart’s Marketside brand at select stores.

At the time of writing, YUM shares were down 1% and heading for their worst week in nearly two months. WMT stock was up 0.8%.

The CDC said all best-by dates for products linked to the outbreak have passed and there is currently no risk of contracting Cyclosporiasis from them. The FDA, however, is still investigating how the lettuce became contaminated with Cyclospora.

Retail’s Take On YUM And WMT

Retail sentiment surrounding YUM on Stocktwits turned ‘bullish’ from ‘neutral’ over the past 24 hours, while sentiment for WMT trended in the ‘bearish’ zone.

YUM shares have declined 6% so far this year, while WMT stock has declined 4.3% over the same period.

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