Taco Bell, a division of Yum! Brands (NYSE:YUM), and other fast-casual chains are seeing a sharp decline in customer visits as a foodborne Cyclospora parasite outbreak spreads.

Data from Placer.ai as of July 17 shows that foot traffic at Taco Bell fell 18.9% compared to the day-of-the-week average from January 1 to July 6.

The outbreak, linked to contaminated lettuce, has also impacted other chains.

Taco Bell’s Supply Chain Issues

• The FDA traced the Cyclospora outbreak to Mexico-sourced iceberg lettuce used in Taco Bell’s supply chain, prompting Taylor Farms and Sysco to remove the product.
• U.S. health officials are investigating the lettuce supplier Taylor Farms as a potential source of the outbreak, which has affected thousands of consumers.

Impact on Other Fast-Casual Chains

• Chopt experienced a 14.3% drop in foot traffic, while Chipotle Mexican Grill (NYSE:CMG) and Panera Bread saw decreases of 6.9% and 6.6%, respectively.
• CAVA Group (NYSE:CAVA) reported a 4.2% decline in customer visits, reflecting broader concerns across the fast-casual dining sector.

Image: Shutterstock

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