Cyclospora Cases Linked to Taco Bell Jump to 9,481, Up 49% From Aug. 5
YUM is trading near its 52-week low of $137.33 (9.8% above the low).
Summary
The FDA and CDC now report 9,481 cyclospora cases, up from 6,358 in the Aug. 5 update, a 49% jump in just over a week. The outbreak has been tied to Taco Bell, with foot traffic down as much as 18.9% in late July. The FDA remains confident that all recalled iceberg lettuce related to this specific cyclospora outbreak is off the market, and cases include 398 hospitalizations. The last illness onset was Aug. 3. This follows the July 25 report of over 8,100 cases in Michigan alone, so the situation is worsening, not stabilizing. Taco Bell is Yum's biggest brand, and same-store sales grew 7% in Q2 despite the outbreak, but a continued surge in cases could pressure traffic and sales into Q3.
At the time of this announcement, YUM was trading at $150.85 on NYSE in the Trade & Services sector, with a market capitalization of approximately $41.2B. The 52-week trading range was $137.33 to $170.14. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.