YUM
Yum Shares Slide 10% as Taco Bell Traffic Drops Nearly 19%
Article Summary
SELL- Brands (NYSE: YUM) shares have fallen about 10% since July 10 as Taco Bell traffic dropped nearly 19% on July 17 following a cyclosporiasis outbreak linked to Taylor Farms lettuce.
- The chain voluntarily removed all lettuce supplied by Taylor Farms after health officials traced cases of cyclospora to restaurants, though the FDA later determined the positive test result was false.
- The outbreak also appears to be weighing on other restaurant businesses, with Chopt and Sweetgreen reporting double-digit traffic declines and Chipotle and Panera underperforming the broader fast-food category.
- Health authorities are continuing to investigate Taylor Farms produce and using other methods to trace the source of the outbreak, leaving investors with limited clarity over how long the disruption may affect Taco Bell's traffic.
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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.