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Yum Reports Strong Quarter As Taco Bell Faces Health Scare

The positive results came before a Cyclospora outbreak sickened more than 1,900 people across nine states, with nearly 100 hospitalizations reported.

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Yum Brands reported better-than-expected second-quarter earnings, but a Cyclospora outbreak linked to Taco Bell has overshadowed the company's strong financial performance, according to CNN.

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The report said Yum posted net income of $853 million, while same-store sales across KFC, Pizza Hut and Taco Bell rose 3% globally. Taco Bell remained the company's strongest performer, recording 7% growth at existing restaurants during the April-June quarter.

According to CNN, the positive results came before a Cyclospora outbreak sickened more than 1,900 people across nine states, with nearly 100 hospitalizations reported. Taco Bell removed lettuce supplied by Taylor Farms after federal health officials identified it as the likely source of the contamination.

The report said customer traffic dropped sharply after the outbreak became public, although visits have begun to recover. Taco Bell has introduced promotions on lettuce-free menu items and pledged to prioritize food safety as it works to restore customer confidence following one of the biggest setbacks in the chain's recent history.

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