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Taco Bell sales have fallen 2% so far in the third quarter of the year following the cyclosporiasis outbreak in the United States, a parasitic infection that authorities first linked to the fast-food franchise, its executives stated on Thursday.
"Given that the issue of food safety in the U.S. industry took center stage just two weeks ago, we saw the maximum impact on sales during the weekend of July 18," said Ranjith Roy, Chief Financial Officer of Yum! Brands, the company that owns Taco Bell, in a call with investors.
The decline coincides with the cyclosporiasis outbreak, with 11,573 possible cases in the United States, according to the latest report from the Centers for Disease Control and Prevention (CDC), which reported that a total of 1,947 people infected with the Cyclospora parasite "reported having been exposed to Taco Bell."
Still, the number could be higher, as in Michigan alone, the most affected state, state authorities report more than 10,000 confirmed infections, while in other states, such as North Carolina, they are investigating other sources of infection, such as cilantro and parsley.
In this context, the CEO of Yum! Brands, Chris Turner, expressed confidence that "the impact on sales will be temporary," stating that the restaurants are already in their "early days of recovery" because authorities, he argued, have found that the outbreak is not unique to Taco Bell.
"We are encouraged by some factors. The high level of uncertainty initially affected consumer demand, and since then, consumers are increasingly aware that this is an industry-wide issue and not a Taco Bell-specific problem," he stated.
The Chief Financial Officer also assured that "the sales declines have moderated substantially" and there is "a steady improvement in day-to-day sales trends."
The parasite in question causes cyclosporiasis, the main symptom of which is severe and frequent diarrhea, along with loss of appetite, weight loss, abdominal bloating, nausea, fatigue, low-grade fever, and vomiting, according to the CDC.
The disease is usually not transmitted from person to person, is more frequent in the hot months, from May to August, and usually originates from contaminated fruits and vegetables.
U.S. federal authorities have linked the outbreak to iceberg lettuce grown in Guanajuato, in central Mexico, which was then distributed by the California company Taylor Farms to establishments such as Taco Bell, but the Mexican government announced last week that it would conduct its own study.
[Publicidad]