Taco Bell’s parent company, Yum Brands, reported a 7% increase in same-store sales in the second quarter, marking the ninth consecutive quarter of growth. However, the chain faces challenges following a multistate cyclosporiasis outbreak linked to shredded lettuce.
Taco Bell responds with lettuce-free promotions
Taco Bell has introduced discounted lettuce-free menu items to regain customer trust after the outbreak. The chain offered its Mexican pizza for $1 at participating locations, along with $1 deals on Enchiritos and regular nacho fries for rewards members. A Mexican pizza typically costs $5.69 and does not include lettuce.
The outbreak, caused by the parasite Cyclospora, has sickened more than 1,600 people across five states: Indiana, Kentucky, Michigan, Ohio, and West Virginia. The U.S. Food and Drug Administration (FDA) identified shredded iceberg lettuce supplied by Taylor Farms and sourced from central Mexico as the likely source. While one lettuce sample tested negative, the FDA maintained that epidemiological evidence supported the recall.
Company actions and financial impact
Taco Bell removed the affected lettuce from its restaurants in mid-July. Despite the outbreak, Yum Brands reported operating profits of $655 million, a 5% increase year over year. However, foot traffic at Taco Bell has declined since July 13, and shares of Yum Brands have fallen nearly 10% since July 10.
The company has emphasized transparency and safety, with CEO Chris Turner stating that the brand is acting quickly to address the issue. Cyclosporiasis symptoms include diarrhea, fatigue, cramping, and weight loss, with more than 90 hospitalizations reported.
Industry context and past outbreaks
This is not the first food safety incident tied to Taco Bell. In 2010, a salmonella outbreak sickened 155 people, and in 2024, an E. coli outbreak linked to McDonald’s infected around 100 people. The current outbreak is significantly larger in scale.
Taco Bell’s recovery efforts focus on rebuilding consumer confidence while navigating the financial and reputational challenges posed by the outbreak.