Taco Bell same-store sales drop 2% after cyclospora outbreak linked to lettuce

Published Jul 30, 04:41 PM UTC

Taco Bell is recovering from a cyclospora outbreak linked to iceberg lettuce that sickened thousands across multiple U.S. states in July 2026. The chain's same-store sales dropped 2% quarter-to-date through July 27, reversing a strong second quarter where sales rose 7%. Yum! Brands reported the sharpest impact occurred over the weekend of July 18. Taco Bell swiftly removed the affected lettuce and launched promotional efforts, including $1 Enchirito and $1 Mexican Pizza through its Tuesday Drops program, which set records for app traffic and loyalty acquisitions. CEO Christopher Turner noted consumer sentiment improved as the public understood the issue was not Taco Bell-specific. By late July, average daily sales had recovered halfway to prior-year levels. The company expects the disruption to be temporary but projects Q3 restaurant margins between 19-21% due to lower sales and promotional investments.