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Taco Bell sales fell 2% after cyclospora outbreak
CNN • • business
Key Points:
- Yum Brands reported strong second-quarter earnings with $853 million in net income, more than doubling from the previous year, and a 7% sales growth at Taco Bell before the cyclospora outbreak.
- Since the outbreak was linked to Taco Bell in mid-July, sales at the chain have declined 2%, with foot traffic dropping as much as 30%, though some recovery has occurred following promotions and public reassurances.
- Over 1,900 people across nine states fell ill from cyclospora after eating at Taco Bell, leading the company to remove the suspected lettuce supplier and launch $1 promotions to regain customer trust.
- CEO Chris Turner emphasized the outbreak’s impact is temporary and noted consumer awareness that the issue affects the entire industry, not just Taco Bell.
- Experts highlight the critical need for Yum Brands to restore confidence quickly, as Taco Bell remains the company’s primary growth driver despite the current food safety crisis.
