Yum Brands Beats Earnings Expectations, but Cyclospora Outbreak Weighs on Taco Bell

Yum Brands posted quarterly profit above Wall Street expectations, with revenue in line with market forecasts. Taco Bell's same-store sales declined as a Cyclospora outbreak linked to shredded lettuce at its restaurants hit foot traffic. During the quarter, Yum Brands completed the sale of its Pizza Hut business. The company reported third-quarter fiscal net profit of $1.62 billion, or $5.92 per share, compared with $397 million, or $1.41 per share, a year earlier. Excluding gains from the Pizza Hut sale and other non-recurring items, the restaurant company's earnings per share were $1.56. Net sales rose 4% year over year to $2.05 billion. Excluding Pizza Hut, overall same-store sales for the quarter were flat, weighed down by Taco Bell. Due to the foodborne Cyclospora outbreak, consumers' willingness to visit restaurants fell in the short term, and Taco Bell's same-store sales dropped 4%.