Taco Bell sales rebound following safety concerns

Yum! Brands reported a 3.8% increase in quarterly revenue to $2.05 billion for the period ending September 30, 2026, exceeding analyst consensus estimates. While KFC’s global expansion drove overall growth, the company’s largest chain, Taco Bell, saw a 4% decline in U.S. same-store sales tied to a cyclospora outbreak linked to shredded lettuce.

Despite the setback, company executives reported a swift turnaround in the fourth quarter. CFO Ranjith Roy stated that same-store sales have risen 3% over the last four weeks compared to the same period last year. Management attributed the recovery to strategic shifts in loyalty rewards and limited-time menu offerings.

CEO Chris Turner noted that Taco Bell has outperformed the broader quick-service restaurant industry since late September. Investors reacted with a modest 0.2% decline in Yum! Brands' stock price on Wednesday. The quarterly earnings report also reflected the completed divestment of the Pizza Hut brand.