Yum revenue rises as Taco Bell sales feel outbreak impact

Yum! Brands reported higher third-quarter revenue and adjusted earnings, while Taco Bell’s U.S. same-store sales fell 4% amid a summer cyclospora outbreak. The company said sales at the chain had improved since the disruption, with growth in the fourth quarter to date. For the quarter ended September 30, Yum reported revenue of $2.05 billion, up about 4% from a year earlier, and adjusted earnings per share of $1.56. Net income was $1.62 billion, compared with $397 million in the year-earlier quarter. The latest period included gains tied to the divestiture of Pizza Hut. Yum attributed Taco Bell’s 4% U.S. same-store sales decline to the outbreak. Executives said the weekend of July 18 marked the sharpest impact on sales. The company’s reported results do not establish the outbreak’s link to a particular supplier; one account cited health authorities as identifying lettuce supplied by Taylor Farms, while another described the outbreak as linked to Taco Bell lettuce. Chief Financial Officer Ranjith Roy said Taco Bell same-store sales were up about 1% quarter-to-date and 3% in the latest four weeks, compared with the same periods a year earlier. Yum Chief Executive Chris Turner...