Sweetgreen (SG) shares surged more than 15% on Friday. The relief rally followed federal health officials formally linking a multi-state Cyclospora outbreak to a competitor.
The CDC and FDA identified shredded iceberg lettuce at certain Taco Bell locations as the source. This outbreak has sickened more than 1,600 people.
Sweetgreen's stock previously declined significantly on investor concerns the chain was implicated in the illnesses. Selling pressure reversed after authorities named Taco Bell and its supplier as the source.
The stock gains occurred even as the broader market traded lower.