Sweetgreen shares plummeted to erase all 2024 gains as investors reacted to a widespread U.S. cyclosporiasis outbreak. The intestinal illness stems from a parasite often found in contaminated fresh produce.
This outbreak triggered a broader sell-off among restaurant chains reliant on fresh ingredients. Market anxiety remains high regarding the safety of lettuce, which is a suspected culprit in the ongoing investigation.
Health officials have not directly linked any illness cases to Sweetgreen. The specific source of the outbreak remains unidentified. Other fast-casual stocks also declined due to these safety concerns.