The Taco Bell emblem is displayed at a Taco Bell restaurant on July 14, 2026 in Pasadena, California.
Mario Tama | Getty Pictures
Yum Manufacturers on Thursday reported blended quarterly outcomes however supplied no particulars on how the cyclospora outbreak tied to Taco Bell eating places is affecting its enterprise.
For the reason that Meals and Drug Administration first linked the parasitic outbreak to iceberg lettuce served by Taco Bell in mid-July, every day visitors to the chain’s places has plunged by double-digit percentages, in response to Placer.ai knowledge. Yum is dependent upon Taco Bell as a “progress engine” for the corporate, and the disaster places that title in jeopardy, a minimum of within the close to time period.
The outcomes Yum reported are for its second quarter ended June 30, earlier than it was tied to the foodborne sickness outbreak. Throughout Yum’s earnings convention name, which begins at 8:15 a.m. ET, executives will probably face questions concerning the associated gross sales downturn at Taco Bell and any impact on its future earnings. The restaurant firm doesn’t sometimes present an outlook for same-store gross sales progress or earnings per share for the total yr or the subsequent quarter.
Different restaurant chains not implicated within the outbreak have additionally seen their gross sales slip. Chipotle Mexican Grill executives mentioned customers’ distrust of chains serving recent lettuce weighed on gross sales within the second half of July.
This is what Yum reported in contrast with what Wall Avenue was anticipating, based mostly on a survey of analysts by LSEG:
- Earnings per share: $1.62 adjusted vs. $1.58 anticipated
- Income: $2.17 billion vs. $2.2 billion anticipated
Yum reported second-quarter internet revenue of $853 million, or $3.08 per share, up from $374 million, or $1.33 per share, a yr earlier.
Excluding costs associated to its strategic overview of Pizza Hut and different objects, the restaurant firm earned $1.62 per share.
Internet income climbed 12% to $2.17 billion, lifted by new restaurant openings.
The corporate’s international same-store gross sales rose 3% within the quarter, roughly in keeping with StreetAccount estimates of two.9% progress.
Taco Bell’s same-store gross sales jumped 7% within the quarter. The Mexican-inspired chain has lengthy been the highest performer in Yum’s portfolio.
KFC reported same-store gross sales progress of two%. In China, its largest market, system gross sales rose 6%, in response to Yum.
Pizza Hut’s same-store gross sales slipped 1%. Final month, Yum introduced the sale of the long-struggling pizza chain to non-public fairness agency LongRange Capital and Yum China for $2.7 billion.
Correction: Yum Manufacturers on Thursday reported blended quarterly outcomes. An earlier model misstated the day.