Taco Bell sales fall more than expected after US outbreak hit
Yum Brands reported a 4 per cent drop in Taco Bell quarterly same-store sales following a multistate cyclosporiasis outbreak.
Taco Bell saw a 4 per cent fall in third-quarter same-store sales, missing analyst expectations of a 0.9 per cent drop, according to the Economic Times.
The decline followed a multistate cyclosporiasis outbreak in the US during the quarter, which made customers wary of dining at the Tex-Mex chain.
Data firm Placer.ai reported that weekly foot traffic at Taco Bell outlets dropped by around 20 per cent at the peak of the epidemic, though the chain recovered in September and October.
US health authorities declared the outbreak over last month, noting it resulted in 570 hospitalisations and two deaths.
Yum Brands CEO Chris Turner said that since the end of September, Taco Bell U.S. has grown its same-store sales faster than the quick service restaurant industry.
Overall same-store sales at Yum Brands were flat compared to a year earlier, missing estimates of a 0.9 per cent rise. KFC same-store sales rose 1 per cent, below the expected 2.1 per cent rise.
