Yum Brands Q2 earnings, Taco Bell sales fall to cyclospora

Yum Brands, the parent company of Taco Bell, reported strong second-quarter earnings on Thursday, July 30, 2026, but acknowledged a recent sales decline at its flagship chain due to a widespread cyclospora outbreak linked to contaminated lettuce. The company said the food safety crisis caused a meaningful near-term impact, though executives expressed confidence that the slump is temporary and recovery is already underway.

For the quarter ending June 30, which concluded before the outbreak, Yum Brands posted robust results. Global same-store sales grew 3%, led by a 7% increase at Taco Bell and a 2% rise at KFC. Net income more than doubled to $853 million compared to the same period last year. The performance underscored Taco Bell's role as the company's primary growth engine, contributing 43% of Yum's operating profit.

However, sales trends reversed in the current quarter following the cyclospora outbreak. From the end of June through July 27, same-store sales for Taco Bell in the U.S. fell 2%. The sales impact peaked around the weekend of July 18, shortly after the U.S. Food and Drug Administration publicly identified Taco Bell as part of its investigation. The outbreak has...