Taco Bell Works to Restore Sales After Cyclospora Outbreak
Taco Bell is working to recover after a cyclospora outbreak linked to iceberg lettuce caused same-store sales to decline by 2 percent in early July. The chain had previously posted strong performance, with a 7% increase in same-store sales during the second quarter and digital sales reaching 47%. However, the public health crisis disrupted this momentum, particularly affecting weekend traffic around mid-July. The company responded swiftly by removing affected lettuce from its menu and has since observed signs of recovery. CFO Ranjith Roy noted that Taco Bell is seeing a steady return to normal growth levels following initial sales pressure. While near-term profitability will be impacted due to lower sales, the chain expects the disruption to be temporary. Taco Bell also used social media engagement strategies and promotions like $1 Enchirito and Mexican Pizza offers through its loyalty program to attract customers back. Digital platforms have played a key role in recovery efforts as online sentiment has returned to pre-crisis levels.
Tickers: $YUM