Yum Brands reported mixed results for the quarter, with Taco Bell experiencing a notable decline in sales due to a cyclospora outbreak linked to lettuce. The outbreak, which has affected more than 4,000 people across the U.S., led to a significant drop in foot traffic at Taco Bell locations, particularly in Indiana, Kentucky, Michigan, Ohio, and West Virginia. According to the Washington Post, the Centers for Disease Control and Prevention (CDC) identified a link between the outbreak and shredded iceberg lettuce served at the chain.
The Food and Drug Administration (FDA) initially found a sample of lettuce from Taylor Farms de Mexico to be positive for cyclospora, but later called it a false positive. Despite this, the FDA maintains that the outbreak is linked to the lettuce from Taylor Farms, which was also served at Taco Bell. The FDA continues to advise against consuming recalled iceberg lettuce, as reported by CNBC.
Yum Brands noted that sales at Taco Bell have been improving over the last 10 days, indicating a potential recovery from the initial impact of the outbreak. The company has taken steps to remove the suspected lettuce from its restaurants and has adjusted its supply chain accordingly. Taco Bell emphasized that this is an industry-wide issue, not specific to their brand.
The FDA’s investigation into the outbreak continues, with no confirmed positive sample results for cyclospora as of now. The agency is working with Taylor Farms to ensure that all implicated products have been removed from the market. Despite the challenges, industry analysts do not expect the outbreak to have a long-term financial impact on Taco Bell or Yum Brands, as noted by The Packer.
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