YUM
Taco Bell visits drop 19% after lettuce parasite outbreak
Article Summary
HOLD- Brands Inc. (NYSE: YUM) saw customer visits to Taco Bell restaurants fall sharply Friday following a parasite outbreak that health authorities connected to lettuce from one of the chain's suppliers.
- Foot traffic on July 17 dropped nearly 19% below Taco Bell's typical Friday average recorded between Jan. 1 and July 6, exceeding the 1.9% decrease seen across the broader fast-food category that day.
- The chain removed all lettuce supplied by Taylor Farms from its U.S. locations after health officials traced cases of cyclosporiasis to lettuce served at restaurants.
- The Food and Drug Administration reported Saturday that it found a positive test connecting cyclospora to Taylor Farms lettuce not included in an existing recall but later determined the result was false positive.
- Health officials continue investigating Taylor Farms produce using alternative testing methods.
- Michigan recorded 6,148 illnesses and 102 hospitalizations, the highest state count, with state figures typically trailing national totals.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 9.7% | 25% | 35.0 ptsBelow Screener (9.7%) - Weak growth |
| EPS Growth Next 5Y ? | 10.5% | 25% | 35.0 ptsBelow Screener (10.5%) - Modest outlook |
| Target Price Upside ? | 19.0% | 20% | 60.0 ptsModerate Upside (19.0%) - Target: $175.30 vs Current: $147.37 |
| Gross Margin % ? | 45.7% | 15% | 60.0 ptsSolid (45.7%) - Decent margins |
| Drawdown from 52-Wk High ? | -13.4% | 15% | 40.0 ptsMild Pullback (-13.4%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About YUM
- Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises traditional and non-traditional quick service restaurants in the United States, China, and internationally.
- The company operates in four segments: KFC Division, Taco Bell Division, Pizza Hut Division, and Habit Burger & Grill Division.
- It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and Habit Burger & Grill brands, which specialize in chicken, Mexican-style food and pizza categories, made-to-order chargrilled burgers, sandwiches, and other products.
- The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to Yum!
- Brands, Inc. in May 2002. Yum! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.