Yum! Brands faces Taco Bell traffic hit from Taylor Farms lettuce scare

CommodityAnalyst
โดย Yahoo Finance·Read original
Summary · why it matters

The FDA walked back a false-positive test result but maintained its ongoing investigation into Taylor Farms shredded lettuce linked to a multistate Cyclospora outbreak. According to data from place.AI, Taco Bell saw foot traffic decline nearly 19% on Friday, July 17, compared to a previous Friday year to date, while Chop experienced a 14% drop and Chipotle a 7% decline. A Taco Bell spokesperson told Yahoo Finance that the chain voluntarily removed all affected Taylor Farms lettuce from every U.S. restaurant within 72 hours of receiving affirmative signals from officials. Jefferies analysts lowered their second-quarter same-store sales growth estimate for Taco Bell from 6.5% to 5%, noting the chain is the key growth driver for Yum! Brands after the sale of Pizza Hut.

Impact on stocks 3

Consumer Discretionary▼ · 2 stocks
Yum! Brands Inc
YUM
▼ NegativeDemandrelevance

Taco Bell foot traffic fell nearly 19% and same-store sales estimates were cut due to the lettuce scare.

Chipotle Mexican Grill Inc
CMG
▼ NegativeDemandrelevance

Chipotle saw a 7% foot traffic decline due to the lettuce scare, indicating reduced customer demand.

Financials▲ · 1 stocks

Off-coverage companies 2

Taylor FarmsPrivate▼ Negative
Supplyrelevance

Taylor Farms is the supplier linked to the Cyclospora outbreak, causing its lettuce to be removed from restaurants.

Chopt Creative Salad Co.Private▼ Negative
Demandrelevance

Chopt experienced a 14% foot traffic decline due to the lettuce scare.

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