Sweetgreen stock jumps as CDC links Cyclospora outbreak to Taco Bell lettuce

Sweetgreen (NYSE:SG) shares rose 13.8% after the U.S. Centers for Disease Control and Prevention identified the source of a Cyclospora outbreak. The CDC warned consumers in five states to avoid shredded iceberg lettuce served at Taco Bell restaurants, following an FDA investigation that traced the parasite to a supplier for the fast‑casual chain.

The clarification eased investor concerns that had previously pushed Sweetgreen’s stock down about 25% and contributed to a 12.8% drop in first‑quarter same‑store sales, driven by reduced customer traffic and higher energy costs. Analysts will watch the company’s upcoming second‑quarter earnings report on Aug. 6 for further guidance on its sales recovery.