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CDC Now Officially Confirms Cyclospora Outbreak Linked to Taco Bell Lettuce From Mexico in Five States

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Taco Bell

Federal health officials confirmed Thursday that shredded iceberg lettuce served at Taco Bell restaurants in five U.S. states is the source of a widespread outbreak of cyclosporiasis, a parasitic intestinal illness that has now sickened thousands of people across more than 30 states since the outbreak was first identified in early May.

The Centers for Disease Control and Prevention issued a warning late Thursday advising consumers not to eat shredded iceberg lettuce from Taco Bell locations in Indiana, Kentucky, Michigan, Ohio and West Virginia. According to the CDC’s most recent tally, the outbreak has sickened at least 1,644 people across 34 states, including at least 94 hospitalizations, though officials cautioned that federal numbers lag behind what individual state health departments have reported. Michigan alone reported more than 5,000 confirmed cases as of Friday, including 102 hospitalizations, according to the state’s Department of Health and Human Services, a figure far exceeding the CDC’s national count and underscoring how significantly reporting delays have affected the visibility of the outbreak’s true scale.

A Food and Drug Administration trace-back investigation identified a single supplier behind the contaminated lettuce. While the federal government’s initial public warnings did not name the company, Taylor Fresh Foods, based in Salinas, California, confirmed that FDA testing had traced the contamination to a specific independent farm affiliated with the company in central Mexico. In a statement posted to social media on July 17, Taylor Farms de Mexico said it was voluntarily removing all iceberg lettuce sourced from central Mexico and had informed the FDA that it would initiate a formal recall. The company emphasized that none of its branded salads or salad kits sold in grocery stores nationwide are connected to the outbreak, noting that those retail products do not contain iceberg lettuce in the first place.

Taco Bell confirmed Friday that it had completed the removal of the affected product from its restaurants nationwide. “As of July 17, Taco Bell has completed removal of affected Taylor Farms lettuce from our restaurants,” the company said in a statement. “Based on ongoing conversations with public health officials, and out of an abundance of caution, Taco Bell worked swiftly to voluntarily remove the product from restaurants and the affected ingredient has been removed from our supply chain nationwide. We took this action to ensure our guests can enjoy their Taco Bell favorites safely. We believe public health is a shared responsibility among restaurants, their suppliers, and authorities, and we are proud to have consistently acted quickly and proactively to protect our guests.”

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The CDC has said it is also investigating additional cyclosporiasis illnesses and outbreak clusters nationally that are unrelated to the Taco Bell lettuce findings, meaning not every reported case tied to the broader national surge in cyclospora infections is necessarily connected to this specific source.

Cyclosporiasis is caused by Cyclospora cayetanensis, a microscopic parasite transmitted through contaminated food or water. According to the CDC, symptoms typically begin about one week after exposure, though onset can range anywhere from as soon as two days to as long as two weeks or more after consuming contaminated food. Common symptoms include watery diarrhea, loss of appetite and weight loss, with the illness sometimes persisting for weeks if left untreated. Officials noted the infection is treatable with antibiotics once properly diagnosed, though there is no routine testing for cyclospora, meaning healthcare providers typically only test for it when an outbreak has already raised awareness among clinicians. No deaths have been reported in connection with the current outbreak.

Health officials have emphasized that thorough washing alone cannot reliably remove Cyclospora from produce, since the parasite is resistant to typical rinsing methods. The CDC recommends cooking produce to an internal temperature of at least 158 degrees Fahrenheit, or 70 degrees Celsius, as the most reliable method for killing the parasite when contamination is a concern.

The outbreak has had measurable financial consequences for companies connected to the fresh produce and fast-food supply chain. Shares of Yum Brands, Taco Bell’s parent company, fell nearly 7% over the five trading days following the outbreak’s public disclosure. Other companies that sell fresh lettuce also saw their stock prices affected by the broader health scare, even without direct ties to the confirmed outbreak source. Salad chain Sweetgreen saw its shares plunge nearly 13% over the course of the week, while fast-casual chain Cava fell more than 3%. Both companies saw a partial rebound Friday, with Sweetgreen shares rising more than 17% and Cava climbing about 2%, a reaction analysts attributed to apparent relief among investors once the CDC’s investigation confirmed that neither company’s ingredients were identified as a source of the outbreak. Analysts have generally said any near-term sales or stock price impact facing Taco Bell and similarly affected companies is likely to be limited in scope and duration, particularly once headlines about the outbreak begin to fade.

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This is not the first time Taylor Farms has been connected to a significant foodborne illness investigation involving a major fast-food chain. Last year, an E. coli outbreak was traced to onions supplied to several restaurants from a Taylor Farms facility in Colorado, a situation that briefly forced McDonald’s to stop using onions on its Quarter Pounder sandwiches at some locations while the investigation unfolded. On its website, Taylor Farms describes itself as the leading global producer of salads and healthy fresh foods, operating production facilities across the United States, Canada, Mexico and Western Europe, and industry analysts have noted that a small number of large, vertically integrated companies like Taylor Farms dominate the U.S. bagged lettuce and salad supply chain, meaning contamination at a single facility or farm can quickly ripple across numerous restaurant chains and retail products nationwide.

The FDA said it continues working with Taylor Farms to determine whether lettuce from the implicated Mexican farm was distributed to any additional locations or retailers beyond the five states currently named in the CDC’s consumer warning. Federal and state health officials said the investigation remains active, and additional updates are expected as testing and case reporting continue in the coming weeks. Consumers who believe they may have symptoms consistent with cyclosporiasis are encouraged to consult a healthcare provider and report their illness to their local health department to assist ongoing surveillance efforts tied to the outbreak.

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U.S. Oil Prices Rise Back Above $80 a Barrel

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Ryan Dezember hedcut

Gasoline prices have risen even more than prices of crude oil since fighting choked off Persian Gulf supplies, because of lower inventories. RBOB gasoline futures ended Friday at $3.3927 a gallon in New York, their highest prices since late May.

Diesel futures added 14% this week, while national average retail prices rose back above $5 a gallon. Rising prices for the fuel that powers trucks, farm machinery and construction equipment threaten to rev up inflation.

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Oil Futures Rise on Middle East Escalation Fears

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Oil Futures Rise on Middle East Escalation Fears

1509 ET – Crude futures post double-digit weekly gains as the U.S. widens its military strikes against Iranian targets and Iran hits out at neighboring Gulf countries. Added to concerns about escalation is the possibility of Yemen’s Houthis taking action to block shipping through the Red Sea, where Saudi Arabia has been rerouting oil exports with the closure of the Strait of Hormuz. “Renewed escalation over the strait’s ‘red line’ with inventories at the lowest levels in recent years and a majority of SPR releases behind us poses significant upside risks to energy prices,” Amarpreet Singh of Barclays says in a note. “As things stand, we think oil markets are still too complacent about the potential fallout for inventories.” WTI settles up 4.5% at $82.49 and Brent rises 4.6% to $88.10 a barrel, with both benchmarks up 16% on the week. (anthony.harrup@wsj.com)

Oil Rises More Than 2% As U.S.-Iran Tensions Remain High

1224 GMT – Oil prices extend gains in early U.S. trade, with Brent crude up 2.1% to $86.02 a barrel and WTI futures rising 2.4% to $80.15 a barrel. Escalating tensions between the U.S. and Iran are curbing flows through the Strait of Hormuz and raising fears of a full-blown conflict as the two sides attack energy infrastructure in the Gulf region. Meanwhile, all eyes are on the Bab el-Mandeb strait, the gateway to the Red Sea that market watchers fear could become a target for Yemen’s Houthi rebels. While in February just under 3.9 million barrels a day were transported through this strait, the figure rose to about 7.2 million barrels in April, highlighting the growing importance of the shipping route, analysts at Commerzbank say. (giulia.petroni@wsj.com)

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Samsung Electronics America to cut 739 New Jersey positions

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Samsung Electronics America to cut 739 New Jersey positions

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ICF: REIT Sector Remains Attractively Valued This ETF Provides That Exposure (BATS:ICF)

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REIT Replay: Office REIT Stocks Plummet In Recent Week Amid Growing AI Fears

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Nick Ackerman is a former financial advisor using his experience to provide coverage on closed-end funds and exchange-traded funds. Nick has previously held Series 7 and Series 66 licenses and has been investing personally for over 14 years.He contributes to the investing group CEF/ETF Income Laboratory along with leader Stanford Chemist, and Juan de la Hoz and Dividend Seeker. They help members benefit from income and arbitrage strategies in CEFs and ETFs by providing expert-level research. The service includes: managed portfolios targeting safe 8%+ yields, actionable income and arbitrage recommendations, in-depth analysis of CEFs and ETFs, and a friendly community of over a thousand members looking for the best income ideas. These are geared towards both active and passive investors. The vast majority of their holdings are also monthly-payers, which is great for faster compounding as well as smoothing income streams. Learn More.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of RQI, RLTY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Illinois Tool Works: Growth Continues, But I'd Hesitate To Buy Here

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Illinois Tool Works: Growth Continues, But I'd Hesitate To Buy Here

Illinois Tool Works: Growth Continues, But I'd Hesitate To Buy Here

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Macy’s: Successful Turnaround And Solid Macro Support Further Upside (NYSE:M)

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Macy's: Successful Turnaround And Solid Macro Support Further Upside (NYSE:M)

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Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Meta’s Next $10 Billion Deal? Why Anthropic May Rent AI Hardware From Zuckerberg.

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Meta’s Next $10 Billion Deal? Why Anthropic May Rent AI Hardware From Zuckerberg.

Meta’s Next $10 Billion Deal? Why Anthropic May Rent AI Hardware From Zuckerberg.

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Why would Stripe want PayPal?

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Why would Stripe want PayPal?

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Idaho Strategic Resources: Tremendous Ability To Expand, But Only If The Opportunity Is There

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Idaho Strategic Resources: Tremendous Ability To Expand, But Only If The Opportunity Is There

Idaho Strategic Resources: Tremendous Ability To Expand, But Only If The Opportunity Is There

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QuickLogic: Improving Growth Case, But The Valuation Is Still Asking A Lot

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QuickLogic: Improving Growth Case, But The Valuation Is Still Asking A Lot

QuickLogic: Improving Growth Case, But The Valuation Is Still Asking A Lot

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