Taco Bell Same-Store Sales Fell 4% in Third Quarter Amid Cyclospora Outbreak, Yum Brands Beat Profit Estimates

Yum Brands posted third-quarter results today, Nov. 3, that beat on profit and missed on sales. The miss came from its biggest U.S. growth brand.

Adjusted earnings came in at $1.56 per share, ahead of the $1.49 analysts surveyed by LSEG expected. Net sales rose 4% to $2.05 billion. Shares rose roughly 2% to 3% in premarket trading.

The weak spot was Taco Bell. Same-store sales fell 4%, far worse than the 0.9% decline analysts had modeled. Excluding Pizza Hut, Yum's overall same-store sales were flat, short of the 0.9% gain analysts expected.

The outbreak and the traffic hit

Taco Bell was linked in early July to a multistate cyclosporiasis outbreak tied to iceberg lettuce. U.S. health authorities declared the outbreak over last month. It caused 570 hospitalizations and two deaths.

Data firm Placer.ai put the drop in weekly customer visits at about 20% at the peak. Yum executives previously said the weekend of July 18 saw the most severe sales impact.

Yum says diners temporarily pulled back on visits because of the outbreak. That is the company's explanation for the quarter's decline, and it is the one the numbers fit best. Taco Bell accounted for nearly half of Yum's operating profit in 2025, so a dip there moves the whole company.

Taco Bell division operating profit slipped 4% to $255 million, according to company figures. KFC division operating profit rose 8% excluding currency effects to $425 million.

Yum says the rebound is real

CEO Chris Turner said in a statement: "Since the end of September, Taco Bell U.S. has been outpacing the [quick-service restaurant] industry on same-store sales growth."

CFO Ranjith Roy told analysts on the earnings call that Taco Bell's same-store sales are up about 1% so far in the fourth quarter. In the four weeks ended Friday, they rose 3% from a year earlier.

Roy said visits from "heavy" users are back to normal. Traffic from "medium" and "light" customers has recovered to about 95% of prior levels.

Yum credits weekly Tuesday deals for loyalty members for bringing its most loyal customers back faster. To win back casual diners, Taco Bell has leaned on a collaboration with Olivia Rodrigo on a pink Mountain Dew Baja Blast. Placer.ai's data also shows the chain recovering in September and October.

Taco Bell's smaller international business posted same-store sales growth of 5%.

Softness beyond Taco Bell

The outbreak was not the only pressure. Yum said fast food operators are fighting hard for budget-conscious consumers. Elevated living costs are pushing some diners toward cheaper home-cooked meals, while higher-income customers are drifting toward fine dining.

KFC, Yum's largest division, grew same-store sales 1%, short of the 2.1% analysts expected. U.S. KFC system sales shrank 6% in the quarter. The U.S. is now KFC's third-largest market, behind China and Europe, where system sales grew.

Rival Restaurant Brands International, parent of Burger King and Popeyes, topped sales expectations last week on a heavy focus on value.

Pizza Hut exit inflates the headline numbers

Reported net income jumped to $1.62 billion, or $5.92 per share, from $397 million, or $1.41 per share, a year earlier. Operating profit rose to $2.32 billion from $666 million.

Most of that is not restaurant performance. Yum booked a gain of about $1.68 billion from selling Pizza Hut, part of a $2.7 billion divestiture. The mainland China business went to Yum China on Aug. 7, and the rest went to LongRange Capital on Sept. 1. Third-quarter results include Pizza Hut only up to those dates.

Strip out the sale and the picture is modest. Excluding gains and other items, Yum earned $1.56 per share. That is down 1.3% from a year ago. Core operating profit excluding Pizza Hut rose 1%.

What comes next

The fourth-quarter figures Roy cited are early and cover only part of the period. Whether Taco Bell can hold a 3% four-week pace against budget-minded consumers and a crowded value field will show in Yum's next report.

McDonald's reports its own quarterly results Wednesday, Nov. 4, giving another read on how U.S. fast food demand is holding up.