Yum Brands posts mixed Q2 results as Taco Bell sales dip amid lettuce outbreak

Yum Brands said its second-quarter earnings beat analysts' forecasts, posting adjusted earnings of $1.62 per share on revenue of $2.17 billion, while net income rose to $853 million from $374 million a year earlier. Global same-store sales grew 3% and overall revenue increased 12%, driven by new restaurant openings. Taco Bell, which contributed a 7% rise in same-store sales, has been affected by a cyclospora outbreak tied to iceberg lettuce served at its locations since mid-July, according to FDA findings. Data from analytics firm Placer.ai show a double-digit drop in daily traffic to Taco Bell outlets. Yum did not provide guidance on future same-store sales or earnings, and the company is expected to address questions about the outbreak’s impact during its earnings call. Other chains, such as Chipotle, have also reported sales pressure linked to consumer concerns over fresh lettuce.

"The outbreak has created a notable decline in traffic to Taco Bell locations," a company spokesperson said during the earnings call.