Taco Bell Parent Company Says Sales Already Recovering After Cyclospora Outbreak Hit Foot Traffic
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By Mary Whitfill Roeloffs, Forbes Staff. Yum! Brands, the publicly traded parent company of Taco Bell, says it's already recovering from a sales slump driven by a cyclospora outbreak that sent foot traffic to the chain plummeting after thousands of people were sickened by eating tainted lettuce served at its restaurants. Yum! Brands CEO Chris Turner on Thursday said the outbreak, linked to lettuce supplied to Taco Bell by produce giant Taylor Farms, had a "meaningful near-term sales impact" on the company but that sales trends have been "steadily improving" over the last 10 days. He also said brand sentiment on social media has returned to pre-Cyclospora levels and reported "consumers have become increasingly aware that this is an industry-wide issue, not an issue specific to Taco Bell." The comments came as Yum! reported second-quarter earnings for the period ending June 30 - before the outbreak hit. Yum! Brands earnings per share beat industry expectations and the company reported net revenue climbed 12% to $2.17 billion. Shares of Yum! were up about 4% in premarket trading. 31%. That's how much foot traffic to Taco Bell plummeted on July 17, the first Friday after the chain was linked to the outbreak, per Placer.ai. The broader fast-food category posted only a 1.9% traffic decline that same day, meaning Taco Bell's drop was approximately 16 times worse than its peers...
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