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Restaurant Stocks Slide Amid Cyclospora Outbreak Investigation

A fresh health warning from the Food and Drug Administration triggered a market sell-off for major fast-casual chains on Tuesday. The agency identified an outbreak of 72 cyclospora cases, though officials have yet to pinpoint the specific food product or source responsible for the intestinal illness currently under investigation.

Restaurant Stocks Slide Amid Cyclospora Outbreak Investigation

Investors responded to the uncertainty by pulling back from the sector, pushing Sweetgreen shares down 7% in afternoon trading. Chipotle Mexican Grill saw a 3% decline, while Cava Group shares slipped 2%. Yum Brands, the parent company of Taco Bell, also tracked lower as the market reacted to the news.

While the FDA confirmed the case count, the lack of a specific culprit leaves the industry in a state of flux. Cyclospora, a parasite that typically spreads through contaminated produce, often results in prolonged gastrointestinal distress, making the identification of the supply chain breach a critical priority for federal regulators.

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