The Taco Bell logo is displayed at a Taco Bell restaurant on July 14, 2026 in Pasadena, California.
Mario Tama | Getty Images
Yum Brands reported mixed quarterly results on Wednesday, offering no specific details regarding the business impact of the cyclospora outbreak linked to Taco Bell.
Following the Food and Drug Administration’s mid-July connection of the parasitic outbreak to iceberg lettuce served at Taco Bell, Placer.ai data indicates that daily foot traffic at the chain has dropped by double-digit percentages. As Taco Bell serves as a primary growth driver for Yum Brands, the current crisis threatens its short-term trajectory.
The reported financial results cover the second quarter ending June 30, prior to the outbreak’s connection to the chain. During the earnings conference call scheduled for 8:15 a.m. ET, executives are expected to address the sales decline at Taco Bell and its potential impact on future earnings. The company generally does not provide specific outlooks for next-quarter earnings per share or same-store sales growth.
Other dining chains uninvolved in the outbreak have also noted sales declines. Executives at Chipotle Mexican Grill reported that consumer apprehension regarding chains serving fresh lettuce impacted sales during the latter half of July.
Based on an LSEG analyst survey, Yum’s reported figures compared to Wall Street expectations are as follows:
- Earnings per share: $1.62 adjusted, exceeding the $1.58 expected
- Revenue: $2.17 billion, slightly below the $2.2 billion expected
Yum reported second-quarter net income of $853 million, or $3.08 per share, compared to $374 million, or $1.33 per share, from the previous year.
Excluding charges from its strategic review of Pizza Hut and other factors, the company’s adjusted earnings were $1.62 per share. Net revenue increased 12% to $2.17 billion, driven by new restaurant expansions.
Global same-store sales grew by 3% during the quarter, aligning closely with StreetAccount estimates of 2.9% growth.
Taco Bell’s same-store sales saw a 7% increase during the quarter, maintaining its position as the top performer within the Yum Brands portfolio.
KFC reported a 2% rise in same-store sales, while system sales in China, its largest market, grew by 6%.
Pizza Hut’s same-store sales declined by 1%. Previously, Yum announced the sale of the underperforming pizza chain to LongRange Capital and Yum China for $2.7 billion.
