Taylor Farms plans recall amid cyclosporiasis outbreak

California-based produce company Taylor Farms is preparing a recall of ingredients tied to a parasite outbreak, according to a Reuters report citing Bloomberg News, in what could become one of the largest foodborne illness outbreaks in the United States in recent years.

Dig deeper:

The scope of the potential recall remains unclear. Reuters reported that Bloomberg cited a document outlining the planned action. Taylor Farms and the U.S. Department of Health and Human Services, which oversees the Food and Drug Administration, did not immediately respond to requests for comment.

RELATED: Taco Bell pulls lettuce after officials confirm parasite outbreak source in five states

The FDA and the Centers for Disease Control and Prevention are investigating a cyclosporiasis outbreak linked to shredded iceberg lettuce served at Taco Bell restaurants in Indiana, Kentucky, Michigan, Ohio and West Virginia. The parasitic illness can cause diarrhea and other gastrointestinal symptoms, though the FDA has reported no deaths associated with the outbreak.

Big picture view:

Michigan health officials reported 5,002 confirmed cases of cyclosporiasis as of Friday, an increase of 690 cases from the previous day, Reuters reported. Investigators continue working to determine the source of the unusually large outbreak, which began May 1. Most cases have been reported in Michigan, with Ohio and New York also recording significant numbers of infections.

RELATED: Cyclospora outbreak possibly linked to lettuce from Taco Bell supplier: Report

Why you should care:

On Thursday, the FDA said Taco Bell, owned by Yum Brands, would stop using lettuce supplied by a company identified during the agency's investigation.

Although Taco Bell and the FDA did not publicly identify the supplier, the FDA said its traceback investigation found a single supplier of iceberg lettuce from Mexico that served Taco Bell locations visited by people who later became ill.

The Washington Post reported Thursday that investigators had identified Taylor Farms as a potential source of the contamination.

Taylor Farms also supplied the slivered onions identified as the likely source of the 2024 E. coli outbreak linked to McDonald's Quarter Pounder burgers, which resulted in a widespread recall.

According to Placer.ai data cited by Reuters, Taco Bell's daily foot traffic on July 11 fell 5.8% several days after reports that the chain had removed certain ingredients from some restaurants.

Big picture view:

Foodborne illness outbreaks have historically weighed on restaurant performance. McDonald's faced heightened scrutiny during a 2018 cyclosporiasis outbreak linked to salads, while Chipotle Mexican Grill experienced multiple E. coli and norovirus outbreaks that hurt sales, weakened consumer confidence and pressured its stock.

"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.

Yum Brands shares slipped 1%.

Separately, an Ohio man filed a lawsuit alleging he was hospitalized with cyclosporiasis after eating at a Taco Bell in Youngstown, Ohio. The lawsuit seeks damages from Taco Bell, franchise operator Charter Foods and supplier Taylor Farms.

The FDA said it is working with the supplier to determine whether potentially contaminated shredded iceberg lettuce remains on the market and has begun collecting product samples for testing and analysis.

Wendy's and Chipotle Mexican Grill said their restaurants were not affected by the cyclosporiasis outbreak linked to shredded iceberg lettuce, Reuters reported.

Cyclosporiasis OutbreakFood and DrinkRecalls