Cyclospora outbreak trims Taco Bell sales, testing Yum Brands
Taco Bell sales fell 2% from the end of June through July 27 as US health officials tied the outbreak to the chain; nearly 1,900 people across nine states became ill and about 100 hospitalized with no deaths. The brand moved to remove lettuce from Taylor Farms after officials identified it as the likely source; foot traffic plunged about 30% in mid-July and was still about 20% below its daily average by July 23. Yum Brands posted a strong quarterly result overall (net income $853 million; 3% worldwide sales growth across KFC, Pizza Hut and Taco Bell), with CEO Chris Turner calling the impact temporary and note that promotions like $1 lettuce-free items aided a recovery. Shares dipped at first but recovered after the earnings call.
