Taylor Farms and food distributor Sysco Corporation (Sysco (SYY)) have pulled Mexico-sourced iceberg lettuce from circulation after the U.S. Food and Drug Administration linked the product to a widespread cyclospora outbreak associated with Taco Bell restaurants.

FDA Investigation Points To Mexico-Sourced Lettuce

On Friday, California-based Taylor Farms said it voluntarily removed iceberg lettuce sourced from central Mexico after receiving information from the FDA a day earlier.

Sysco, the nation's largest food distributor, confirmed it halted sales and distribution of the product Thursday at Taylor Farms' request, Reuters reported.

According to the publication, the lettuce was processed into 5-pound bags at Taylor Farms' facility in Guanajuato, Mexico and distributed to hospitals, stadiums and fast-food chains, including customers served through Taco Bell's supply chain.

Taylor Farms said none of its branded salad kits are connected to the outbreak and noted its packaged salad kits do not contain iceberg lettuce.

The FDA and the Centers for Disease Control and Prevention (CDC) are investigating an outbreak tied to shredded iceberg lettuce served at Taco Bell locations in Indiana, Kentucky, Michigan, Ohio and West Virginia, according to an update on Friday.

The parasitic illness has resulted in 94 hospitalizations but no reported deaths, as per the FDA update.

Experts Say Food Processing May Have Amplified Outbreak

Food safety experts say large-scale processing could have contributed to the number of infections.

"There literally could be upwards of 1,000 heads of lettuce that get into the bigger mix as these bags are packed and sent to distributors," Darin Detwiler, a food safety expert and adjunct professor at Michigan State University, told Reuters.

Donald Schaffner, a food science professor at Rutgers University, said the contaminated lettuce has likely already been consumed.

"I doubt that there's any infectious lettuce still on the market," Schaffner said.

Michigan Reports More Than 5,000 Cases

Michigan has emerged as the hardest-hit state, reporting 5,002 cases as of Friday, up 690 from the previous day. The outbreak began May 1, with Ohio and New York also reporting significant infections, the report said.

Taylor Farms has faced similar scrutiny before. In 2013, lettuce processed at its Guanajuato facility was linked to a Cyclospora outbreak that sickened more than 600 people across 25 states.

The company also supplied onions identified as the likely source of the 2024 E. coli outbreak tied to McDonald's Quarter Pounder burgers.

The latest outbreak has also weighed on investor sentiment, with Yum Brands Inc. (Yum Brands (YUM)) shares falling 2.75% and Sysco shares slipping 0.68% on Friday, according to market data.

According to market data, Yum Brands has a Growth Score in the 52nd percentile, weighed down by negative price trends across the short, medium and long term.

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