Taco Bell sales fall after lettuce-linked cyclosporiasis

Taco Bell is navigating a significant food safety crisis and sales downturn after being linked to a nationwide cyclosporiasis outbreak traced to contaminated lettuce, its parent company reported this week. The fast-food chain, which had been a standout performer in the industry, is now working to rebuild consumer trust as the broader produce sector grapples with the fallout.

Yum Brands executives detailed the impact during a July 30 earnings call. Chief Executive Chris Turner stated the outbreak has caused a meaningful near-term sales impact, with U.S. same-store sales down 2% so far in the July-September period. This contrasts sharply with the second quarter, which ended before the outbreak, when Taco Bell's same-store sales increased 7%. The company reported that sales bottomed out around July 18-19 but have been steadily improving since, recovering about halfway to prior-year levels in recent days.

Federal health officials first identified Taco Bell as a common source of infections in early July, linking cases in Indiana, Kentucky, Michigan, Ohio, and West Virginia to shredded iceberg lettuce served at its restaurants. The Centers for Disease Control and Prevention later...