YUM · 10-Q · 2026Q2 · Full report

Lettuce Recall and Public Health Issue

YUM BRANDS INC · 2026-08-05 · Importance 34 · Surprise 42 · In source text

On July 17, 2026, Taco Bell U.S. removed certain lettuce supplied by Taylor Farms after the vendor issued a recall following communications with state and federal health officials. The lettuce was removed nationwide before the recall, creating a meaningful near-term impact on Taco Bell U.S. sales. Sales were improving from the low point as the brand implemented a recovery plan, although the company stated that the ultimate impact remained difficult to forecast. The incident demonstrates exposure to vendor-level food-safety disruptions across Taco Bell's nationwide supply chain.

Key facts

• The company believes Taco Bell Company restaurant margin percentage in the U.S. will range between 19% to 21% in the quarter ended September 30, 2026. source
• Taco Bell U.S. saw a meaningful near-term impact on sales as a result of the lettuce issue and sales are improving from their low-point with an expectation they will continue to improve through the quarter ended September 30, 2026. source
• Taco Bell U.S. announced on July 17, 2026 that it had preemptively and voluntarily removed certain lettuce provided by its vendor Taylor Farms, which Taylor Farms subsequently recalled. source
• Taco Bell U.S. removed the lettuce from the nationwide supply chain quickly and transparently, and before the recall. source

Impact estimates