Ranjith Roy reports Taco Bell sales recovery following a multistate cyclospora outbreak linked to shredded lettuce.
Yum Brands CFO Ranjith Roy reported that Taco Bell sales are showing steady improvement following a multistate cyclospora outbreak. The parasite, which causes cyclosporiasis, was linked to shredded iceberg lettuce sourced from central Mexico by Taylor Farms. While the outbreak caused a 2% dip in sales through July 27, Roy noted that the chain is already halfway back to prior-year sales levels within the last four days. To mitigate the impact, Taco Bell has removed all affected lettuce and launched lettuce-free promotions, including a $1 Mexican pizza. Yum Brands CEO Christopher Turner noted that consumer sentiment is improving as the public recognizes the issue is industry-wide rather than specific to the brand. Despite the initial hit, the chain remains a primary growth engine for the parent company, which reported $853 million in net income for the second quarter. The administration of the food safety industry is currently monitoring the situation as the chain works to restore consumer confidence.