Taco Bell cyclospora outbreak slashed July traffic by 31%; Yum! Brands stock rises 3% on strong Q2 earnings beat

Published Aug 2, 06:03 PM UTC

A cyclospora outbreak linked to shredded lettuce at Taco Bell caused a sharp drop in sales and foot traffic in July 2026, with daily traffic falling over 18% by July 15 and nearly 31% on July 17. The CDC tied at least 1,947 illnesses across nine states to the outbreak, with 98 hospitalizations but no deaths. The contaminated lettuce was traced to Taylor Farms de Mexico and recalled. Despite the crisis, Yum! Brands stock rose over 3% on July 30 after reporting strong second-quarter earnings that beat expectations ($1.62 per share vs. $1.58 estimated) and revenue growth of 12% to $2.17 billion. Management indicated the worst sales damage had already passed, reassuring investors that the recovery was underway.