Yum Brands CEO Chris Turner reports steady sales recovery for Taco Bell following a food-safety crisis.
Yum Brands CEO Chris Turner reported on Thursday that Taco Bell sales are beginning to recover following a food-safety crisis caused by a cyclospora outbreak. While same-store sales fell 2% from late June through July 27, the company expects the downturn to be temporary. The outbreak, linked to iceberg lettuce from supplier Taylor Farms, affected more than 1,900 people across nine states. To mitigate the impact, Taco Bell introduced $1 lettuce-free promotions and removed the affected lettuce from its menu. CFO Ranjith Roy noted that sales have improved steadily over the past 10 days, with a 50% recovery in average sales over the last four days compared to the steepest declines. Despite the recent hurdle, Yum Brands reported a strong second quarter, with net income reaching $853 million, more than double the previous year's figure. The company continues to rely on Taco Bell as its primary growth engine, and the administration of the brand's leadership aims to quickly restore consumer confidence.