Yum Brands reported better-than-expected second-quarter results, with profits more than doubling. This growth was driven by higher sales and a rise in comparable sales, which helped offset headwinds from a high-profile food safety crisis.
The company's Taco Bell business had been booming before a cyclospora parasite outbreak linked to tainted lettuce crimped sales. There are ongoing concerns that this outbreak may continue to weigh on near-term demand.
Yum Brands stated that transparency in pulling affected lettuce from stores has helped Taco Bell regain consumer trust. While Wall Street projected a strong quarter, investors remain focused on updates regarding the outbreak. However, the restaurant company provided no update on how the situation is currently affecting its business.