Yum Brands Reports Q2 Sales Growth Driven by Taco Bell Despite Cyclospora Outbreak Impact
Taco Bell was the primary driver of Yum Brands' second-quarter sales growth, with same-store sales rising 7% before a recent cyclospora outbreak affected its operations. CEO Chris Turner highlighted that Taco Bell entered Q3 in its strongest position ever but noted early signs of impact from the foodborne illness linked to lettuce supplied by Taylor Farms. Yum's global same-store sales increased 3%, with KFC up 2% and Pizza Hut down 1%. System-wide sales grew 5%, led by Taco Bell at 9%. Digital sales reached nearly $9 billion, exceeding 60% of the mix excluding Pizza Hut. Yum also added over 1,000 new units during the quarter. The company is moving forward with plans to sell Pizza Hut and has initiated a strategy called 'Raising the B.A.R.' focused on digital innovation and restaurant economics. The CEO emphasized that focusing resources on KFC, Taco Bell, and Habit Burger & Grill will drive future growth.
Tickers: $YUM
Topics: cyclospora outbreak sales performance Taco Bell Yum Brands