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.
Taco Bell Sales Dip Following Cyclospora Outbreak
A widespread parasitic outbreak linked to tainted lettuce served at Taco Bell restaurants caused a 2% drop in US same-store sales through late July. While the health crisis initially spooked diners, executives at parent company Yum! Brands report that consumer confidence is rebounding toward pre-outbreak levels.
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.
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