The Cyclospora outbreak that affected the U.S. over the summer became a meaningful drag on Kroger’s sales as customers reduced purchases from the produce department. Chief Executive Officer Greg Foran said the outbreak reduced identical-store sales excluding fuel by about 0.35 percentage points, translating into more than $100 million in lost sales based on the company’s calculations.

Customers Pulled Back Across the Produce Department

The impact extended beyond products directly associated with the outbreak. Although health authorities linked the outbreak to iceberg lettuce, Foran said customers responded more broadly by avoiding the entire produce department. The episode illustrates how a food-safety incident involving a specific product can quickly affect an entire category when consumer concerns extend beyond the item at the center of an investigation.

The impact emerged toward the end of Kroger’s second quarter of fiscal 2026, after sales had been performing at a stronger pace earlier in the period. Identical-store sales excluding fuel increased just 0.2%, compared with 3.4% a year earlier. Total sales rose 2% to approximately $34.6 billion, while operating profit increased more than 12% to $971 million.

Outbreak Adds to Broader Pressure on Kroger

The Cyclospora outbreak was one of several factors weighing on Kroger’s performance. The company said lower egg prices reduced identical-store sales by about 0.30 percentage points, while changes in drug prices and pharmacy activity related to the Inflation Reduction Act had an approximately 1.40-percentage-point impact. At the same time, the broader macroeconomic environment remained challenging, with consumers facing pressure on household budgets and elevated fuel costs.

Kroger subsequently lowered its 2026 identical-store sales forecast excluding fuel to a range of 0.2%–0.8%, from its previous forecast of 1%–2%. The company nevertheless reported quarterly profit of $641 million, while adjusted earnings per share reached $1.09, up 5% from the year-earlier period.

What Could Shape Kroger’s Sales Outlook?

U.S. health authorities announced on September 11 that the outbreak had ended after identifying contaminated lettuce supplies linked to Taylor Farms de Mexico. The FDA investigation remains ongoing, but products associated with the outbreak are no longer expected to be available in stores or restaurants.

For Kroger, the key question now is how quickly consumers return to buying fresh produce and whether the sales impact proves temporary. A recovery could support the affected department, but the company still faces broader pressure from household spending, fuel prices and changes in pharmacy activity. Results over the coming quarters should provide a clearer indication of whether the outbreak was a one-time disruption or whether it produced a more lasting change in consumer purchasing behavior.