A multistate Cyclospora outbreak linked to lettuce served at Taco Bell weighed on the chain’s July sales, but parent company Yum! Brands said the impact appears to be temporary and that business has begun to recover.
During the company’s second-quarter earnings call on Thursday, Yum chief executive Chris Turner referred to the outbreak as a “current public health issue” and said the company was responding quickly and transparently.
“First and foremost, the safety of our consumers is our highest priority,” Turner said.
“We expect the sales impact to be temporary and are encouraged by a few factors,” he told investors.
“Elevated uncertainty initially weighed on consumer demand. And since then, consumers have become increasingly aware that this is an industry-wide issue, not an issue specific to Taco Bell.”
Taco Bell’s U.S. same-store sales fell 2 percent from the beginning of the third quarter through July 27, according to Yum chief financial officer Ranjith Roy.
The steepest decline occurred around July 18, Roy said, noting that average sales during the four most recent days had recovered about halfway to their year-earlier levels.
The outbreak interrupted a strong second quarter for Taco Bell, which saw same-store sales rise 7 percent from a year earlier. By comparison, the chain posted 4 percent growth in the second quarter of 2025.
Cyclosporiasis is an intestinal illness caused by the microscopic parasite Cyclospora. Its most common symptom is frequent watery diarrhea.
The Centers for Disease Control and Prevention considers May 1 through Aug. 31 the typical cyclosporiasis season, but cases have risen far more dramatically this year.
As of July 27, the CDC had received reports of 6,707 laboratory-confirmed domestically acquired cases across 45 states, compared with just 249 reported by roughly the same point last year.
The nationwide total includes multiple clusters and illnesses not connected to Taco Bell.
The outbreak associated with Taco Bell included 1,947 cases across nine states as of July 24, according to the Food and Drug Administration. At least 98 people had been hospitalized, and no deaths had been reported.
On July 16, FDA investigators said they traced the outbreak back to Taylor Farms de Mexico, which supplied lettuce to Taco Bell locations where people reported eating before becoming ill. Taco Bell stopped using lettuce from that supplier on July 17.
Taylor Farms recalled all iceberg lettuce sourced from central Mexico and removed it from the U.S. market. The recalled food-service products were distributed in at least 28 states, while some Marketside-branded products were also sold at Walmart stores in several states.
The earnings report came several weeks after Yum agreed to sell Pizza Hut’s operations outside mainland China to private equity firm LongRange Capital for approximately $1.5 billion. In a separate transaction, Yum China will acquire the chain’s mainland China business for about $1.2 billion.
The two deals are expected to close during the third quarter, subject to regulatory approval and other customary conditions.
“These transactions will result in a stronger Yum and a stronger Pizza Hut, and we look forward to supporting a smooth transition,” Turner said Thursday.
