Taco Bell sales dip 2% as cyclospora outbreak impacts revenue

Yum Brands said Taco Bell’s sales were down 2% quarter-to-date through July 27, after a cyclospora outbreak linked to iceberg lettuce from central Mexico affected the chain. The company noted that the steepest decline occurred over the weekend of July 18, when the food-safety issue first gained public attention. > "Since the U.S. food safety industry issue became front and center only two weeks ago, we saw maximum impact to sales over the weekend of July 18," CFO Ranjith Roy said on the earnings call. Roy added that sales declines have moderated and that the average sales for the last four days were about half way back to prior-year levels. The outbreak, being investigated by the FDA, CDC and state authorities, has been associated with lettuce sold under Taylor Farms’ brands, though the FDA later clarified that a reported positive test was false. Cases linked to Taco Bell have been reported in nine states. > "Our top priority is, and always will be, the safety and well-being of our consumers," CEO Christopher Turner said, noting that consumer sentiment has improved and that brand-love metrics remain stable. Turner said the chain’s recent Mexican pizza promotion helped boost transactions and that sales trends are steadily improving.