Yum Brands reports mixed results but gives no update on Taco Bell cyclospora outbreak

Yum Brands on Wednesday reported mixed quarterly results but provided no details on how the cyclospora outbreak tied to Taco Bell restaurants is affecting its business.

Since the Food and Drug Administration first linked the parasitic outbreak to iceberg lettuce served by Taco Bell in mid-July, daily traffic to the chain's locations has plunged by double digit percentages, according to Placer.ai data. Yum depends on Taco Bell as a "growth engine" for the company, and the crisis puts that title in jeopardy, at least in the near term.

The results Yum reported are for its second quarter ended June 30, before it was tied to the foodborne illness outbreak. During Yum's earnings conference call, which begins at 8:15 a.m. ET, executives will likely face questions about the related sales downturn at Taco Bell and any effect on its future earnings. The restaurant company does not typically provide an outlook for same-store sales growth or earnings per share for the full year or the next quarter.

Other restaurant chains not implicated in the outbreak have also seen their sales slip. Chipotle Mexican Grill executives said consumers' mistrust of chains serving fresh lettuce weighed on sales in the second half of July.

Yum reported second-quarter net income of $853 million, or $3.08 per share, up from $374 million, or $1.33 per share, a year earlier.

Excluding charges related to its strategic review of Pizza Hut and other items, the restaurant company earned $1.62 per share.

The company's global same-store sales rose 3% in the quarter, roughly in line with StreetAccount estimates of 2.9% growth.

Taco Bell's same-store sales jumped 7% in the quarter. The Mexican-inspired chain has long been the top performer in Yum's portfolio.

KFC reported same-store sales growth of 2%. In China, its largest market, system sales rose 6%, according to Yum.

Pizza Hut's same-store sales slipped 1%. Last month, Yum announced the sale of the long-struggling pizza chain to private equity firm LongRange Capital and Yum China for $2.7 billion.

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