Taco Bell Has Seen 'Meaningful Near-Term Sales Impact' from Cyclospora Outbreak

Dow Jones
07/30

0901 ET - Taco Bell has seen a "meaningful near-term sales impact," according to Yum! Brands CEO Chris Turner, from the multi-state cyclospora outbreak, which has been linked to iceberg lettuce served at some of the chain's locations. "We expect the sales impact to be temporary and are encouraged by a few factors," Turner says on a call with analysts. Uncertainty around public-health concerns initially weighed on consumer demand. But in recent weeks, consumers have become increasingly aware that the outbreak is an industry-wide issue, not something specific to Taco Bell, Turner says. "The team's swift and transparent action reinforced trust in the brand," he says. "Taco Bell's measures of social sentiment have already returned to pre-issue levels of positivity, though we are still in the early days of recovery."

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