Taco Bell Sales Dip Following Cyclospora Outbreak

The company faced significant scrutiny after the FDA identified shredded iceberg lettuce from supplier Taylor Farms as the source of a cyclosporiasis outbreak affecting customers across Indiana, Kentucky, Michigan, Ohio, and West Virginia. Between mid-May and mid-July, at least 1,644 cases were tied to the contaminated produce, contributing to a nationwide surge of over 6,700 reported infections.

CFO Ranjith Roy noted that the financial impact hit its peak on July 18, but recent performance suggests a swift stabilization. CEO Chris Turner pointed to the brand’s record-breaking 'Tuesday Drops' promotional event as evidence of a recovery, noting that daily sales have already climbed back to roughly half of their previous annual benchmarks. Shares in Yum! Brands rose 3.5% in early trading following the earnings call, as investors weighed the temporary setback against the chain's strong 7% growth during the second quarter.