Cyclospora Outbreak Impacts Businesses; FDA Says Threat "Effectively Removed"

Sweetgreen, a fast-casual restaurant chain, has not been linked to the ongoing cyclospora outbreak, but its business has been impacted as consumers avoid lettuce and other produce.

Sweetgreen CEO Jonathan Neman stated the company cut its full-year outlook, and its stock price dropped approximately 30% in the last month. Daily foot traffic also fell at Chopt Creative Salad Co. and Panera Bread locations in mid-to-late July, though neither is linked to the outbreak. Conversely, farmers markets are experiencing increased sales, with customers seeking farm-fresh produce due to cyclospora fears; Kimball Fruit Farm, for example, has been selling out.

The cyclospora outbreak is the largest multistate one on record, with over 10,000 confirmed cases across 47 states since May. The Centers for Disease Control and Prevention (CDC) confirmed two deaths related to this outbreak. On July 17, the U.S. Food and Drug Administration (FDA) linked the outbreak to iceberg lettuce sourced in Mexico by Taylor Farms.

Taco Bell is the only nationwide restaurant chain linked to the contaminated lettuce. Sweetgreen does not use iceberg lettuce and sources all its lettuce from the U.S. The Mexico farm linked to the outbreak had not been inspected by the FDA in seven years, despite the FDA conducting just under 1,000 foreign food safety inspections in 2025.

The FDA is assuring Americans that the cyclospora outbreak has been effectively removed from the market, with the FDA chief stating confidence in eating fresh produce again.