Taco Bell has seen a decline in U.S. sales amid customer concerns over a cyclospora outbreak linked to shredded lettuce, with Yum Brands reporting that the chain’s same-store sales fell 2% so far in the July-September period. The update comes after the outbreak was connected to shredded iceberg lettuce served at Taco Bell restaurants in several U.S. states.
Cyclospora outbreak affects Taco Bell customer traffic
Yum Brands, the parent company of Taco Bell, said Thursday that the chain’s U.S. same-store sales were down 2% during the first part of the July-September period. The decline follows a much stronger performance in the previous quarter, when Taco Bell recorded a 7% increase in same-store sales.
The sales slowdown comes as restaurants deal with concerns surrounding the cyclospora outbreak, a foodborne illness outbreak associated with shredded lettuce. Federal health officials initially linked the outbreak to shredded iceberg lettuce served at Taco Bell locations in Indiana, Kentucky, Michigan, Ohio and West Virginia.
The U.S. Food and Drug Administration later said customers in Illinois, Kansas, Oklahoma and Pennsylvania were also affected.
Taco Bell removed shredded lettuce from US restaurants
Taco Bell took action after the outbreak was linked to its shredded iceberg lettuce. The company removed shredded iceberg lettuce supplied by Taylor Farms from its U.S. restaurants on July 17.
On July 18, Taylor Farms recalled iceberg lettuce grown in central Mexico. The developments came as restaurants faced increased customer concerns about the safety of lettuce products.
Taco Bell sales began recovering after July slump
According to Yum Brands Chief Financial Officer Ranjith Roy, Taco Bell’s U.S. sales reached their lowest point during the weekend of July 18-19. Sales have since been improving steadily, he said during a conference call with investors on Thursday.
Roy said Taco Bell’s U.S. sales over the four days before the call had recovered halfway toward their level from the same period a year earlier.
Yum Brands CEO Chris Turner credited Taco Bell’s quick response and communication efforts with helping customers return. He said the chain’s decision to act quickly to contain the issue, along with clear communication through social media, helped rebuild customer confidence.
Lettuce prices also challenged restaurants in 2026
The cyclospora outbreak is not the only challenge faced by restaurants that rely heavily on lettuce this year. Lettuce prices rose sharply during the first half of 2026 following hot weather in Arizona, where about one-third of the lettuce grown in the United States is produced.
Restaurants are therefore dealing with both higher lettuce costs and the impact of customer concerns surrounding the outbreak.
Taco Bell uses promotions to bring customers back
As sales began to recover, Taco Bell also used promotional offers to attract customers. The chain offered daily specials, including a $1 Mexican pizza, as it worked to encourage diners to return.
The recent sales figures show the immediate impact that food safety concerns can have on restaurant traffic. Taco Bell’s sales have improved from their mid-July low, but the chain remains below the growth level recorded in the April-June quarter.
Source:- AP News
