US restaurant chains hit by foodborne illness outbreaks

Foodborne illness outbreaks have repeatedly disrupted US restaurant chains, triggering recalls, lawsuits and heightened regulatory scrutiny while pressuring customer traffic and sales.

Burrito chain owner Chipotle Mexican Grill said on August 4 it removed jalapenos from all its restaurants in Minnesota and other locations ​that received them after the peppers were identified as a potential source of a salmonella outbreak under investigation by public health authorities.

The salmonella probe ‌comes amid heightened food safety concern following an outbreak of the parasitic disease cyclosporiasis linked to iceberg lettuce that was served at Taco Bell restaurants and renewed attention on Chipotle’s past foodborne illness issues.

The business impact of such outbreaks has varied widely.

RBC Capital Markets analysts said in a note that the evolving outbreak of cyclosporiasis and Chipotle pulling jalapeños tied to Minnesota salmonella cases, may further amplify ​concerns about food safety.

Analysts at TD Cowen wrote in late July that similar food safety issues at McDonald’s in late 2024 only impacted the chain ​for a quarter, while the Wendy’s episode in 2022 saw no discernible impact at all. But previous outbreaks in 2015 at Chipotle Mexican ⁠Grill and in 1993 at Jack in the Box caused sales at those companies to drop sharply for several quarters.

Also Read: Chipotle raises forecast despite hit from cyclospora parasite scare