Taco Bell sales drop as lettuce parasite outbreak hits US restaurants

Taco Bell sales drop as lettuce parasite outbreak hits US restaurants

Taco Bell has seen a decline in same-store sales during the July-September period as a parasite outbreak linked to shredded lettuce affects consumers. Yum Brands, the parent company of Taco Bell, reported on Thursday, July 30, 2026, that sales are down 2% for the current period. This follows a 7% increase in same-store sales during the April-June period.

Federal health officials identified a diarrhea-causing outbreak of cyclospora tied to shredded iceberg lettuce served at Taco Bell locations in West Virginia, Ohio, Michigan, Kentucky, and Indiana. The U.S. Food and Drug Administration later expanded the affected areas to include Pennsylvania, Oklahoma, Kansas, and Illinois.

In response, Taco Bell removed shredded iceberg lettuce supplied by Taylor Farms from its U.S. Restaurants on July 17. One day later, on July 18, Taylor Farms recalled iceberg lettuce that had been grown in central Mexico.

Yum Brands Chief Financial Officer Ranjith Roy stated during a Thursday conference call with investors that sales reached their lowest point during the weekend of July 18-19. However, Roy noted that sales have improved steadily since that time, climbing halfway back to previous year levels over the last four days.

Yum Brands CEO Chris Turner attributed the recovery to clear social media communication and quick containment efforts. To encourage customers to return, the chain offered daily specials, including a $1 Mexican pizza. Turner added:

"With respect to the consumer sentiment, we’ve seen real improvement as consumers have understood better the nature of the issue. They understand that it is not a Taco Bell specific issue."

Chris Turner, CEO of Yum Brands, via conference call

The outbreak has impacted other dining chains even without official government naming. Chipotle Mexican Grill announced Wednesday that it lowered its same-store sales growth expectation for the July-September period from 3% to 1%. The company cited lower traffic resulting from the outbreak.

Research from Placer.ai indicated that foot traffic at Chopt, a chain with 105 locations, fell 12% as of July 23. Additionally, M Science found that weekly spending at Sweetgreen, which operates 285 U.S. Locations, dropped 10 percentage points during the first half of July compared to the previous year. Sweetgreen did not confirm a sales drop, stating in a statement that its food was not connected to the cyclospora outbreak and that the company uses rigorous food safety standards to trace ingredients from farm to restaurant.

The current crisis follows a volatile year for the lettuce industry. Prices for iceberg lettuce rose sharply in the first half of 2026. According to government data, the retail price for a pound of iceberg lettuce increased nearly 20% between January and June. The U.S. Department of Agriculture reported that consumers paid an average of 33% more for all fresh lettuce last month than they did a year ago.

Specific USDA advertised prices from last week showed a head of iceberg lettuce averaged $1.86, an increase of 25 cents over last year. Romaine bunches cost $2.49, which was $1.55 higher than the previous year, and red leaf lettuce cost $1.66, up 52 cents. Some salad mixes provided a reprieve, with prices advertised between 7 and 24 cents cheaper than a year prior.

Elizabeth Canales, an associate professor of agricultural economics at Mississippi State University, attributed the early-year supply gaps to unusually hot weather in Arizona, where roughly one-third of U.S. Lettuce is grown. The heat caused crops to mature too early, leaving a gap until California production began in late April.

Canales also cited rising fuel costs as a factor. Following strikes by the U.S. And Israel on Iran and the subsequent blocking of oil tankers in the Persian Gulf, energy costs rose. Because lettuce is highly perishable and requires a constant "cold chain" for cooling and transport, these costs impacted the industry.

This is not the first time lettuce has been linked to illness. In 2018, two E. Coli outbreaks were linked to romaine lettuce grown in California and Arizona.

The cyclospora situation remains fluid. Federal health officials began investigating a new outbreak involving 72 people last week. Craig Hedberg, a food safety researcher at the University of Minnesota, stated that as the FDA investigation continues, officials will better understand how the illnesses are connected and the overall complexity of the outbreak.