Taco Bell Sales Fall Following Cyclosporiasis Outbreak
· Business · Economic Times, Wall Street Journal
Taco Bell reported a wider-than-expected decline in third-quarter same-store sales after a multistate cyclosporiasis outbreak in the US deterred customers. The outbreak, which health authorities declared over last month, resulted in 570 hospitalizations and two deaths. Weekly foot traffic at the chain dropped by approximately 20% at the peak of the epidemic before recovering in September and October. Despite the sales shortfall, parent company Yum Brands beat quarterly profit expectations, which helped boost its share price by 3% in premarket trading. The company is now working to regain momentum as it competes for budget-conscious consumers in a high-inflation environment.
Why it matters
The sales decline highlights the significant financial impact that food safety outbreaks can have on major fast-food chains and their customer traffic.
Read the original report — Economic Times
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