Restaurant chains hit by foodborne illness outbreaks

Foodborne illness outbreaks continue to disrupt major U.S. restaurant chains, driving recalls, lawsuits, and tighter regulatory scrutiny while pressuring customer traffic and sales, according to Reuters. On Thursday, the U.S. Food and Drug Administration said Taco Bell, owned by Yum Brands, will stop using lettuce from a supplier the agency linked to an ongoing cyclosporiasis outbreak. Michigan health officials reported 5,002 cases of cyclosporiasis as of July 17. Analysts at TD Cowen said similar food-safety issues at McDonald’s in late 2024 affected that chain for one quarter, while a Wendy’s incident in 2022 showed no discernible impact. Earlier outbreaks had larger effects: Chipotle’s 2015 E. coli-linked event and Jack in the Box’s 1993 incident both led to sharp sales declines for several quarters.