Taco Bell Foot Traffic Plunges 20.8% as Cyclospora Outbreak Hits 9,680 Cases in Michigan
YUM is trading near its 52-week low of $137.33 (8.9% above the low).
Summary
The cyclospora outbreak linked to Taco Bell's lettuce is accelerating, with Michigan cases reaching 9,680 and national lab-confirmed cases at 6,707 plus over 11,500 suspected. Foot traffic at Taco Bell dropped 20.8% on July 23 versus the Thursday average, worsening from the 18.9% decline reported earlier. The fear is spreading beyond Taco Bell: Chopt saw a 12.2% drop, Panera 3.1%, and even Chipotle 1.4%. Lettuce sales overall fell 9% week-over-week. This follows a series of escalating outbreak reports since mid-July, and the CDC's investigation into additional sources like parsley and cilantro suggests the crisis may broaden. For Yum, which just sold Pizza Hut for $2.7B and authorized a $4B buyback, Taco Bell's traffic collapse threatens near-term same-store sales and could pressure the stock if the outbreak persists.
At the time of this announcement, YUM was trading at $149.51 on NYSE in the Trade & Services sector, with a market capitalization of approximately $41.4B. 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: Reuters.