Taco Bell sales fell after a food-safety scare
A cyclospora outbreak linked to Taco Bell’s shredded iceberg lettuce led to a significant drop in sales. Daily traffic to Taco Bell locations fell over 18% by July 15 and dropped nearly 31% on July 17.
The outbreak was serious, with at least 1,947 illnesses across nine states tied to people who ate at Taco Bell. This drop in sales matters more for Yum! Brands because Taco Bell is the company’s main growth driver and earns a large share of its U.S. profit.
The earnings call provided the first real answer to whether the damage runs deep or clears quickly. The company reported second-quarter results, which may indicate the extent of the outbreak’s impact on Yum! Brands’ finances.