It’s been a choppy year for restaurants that lean into lettuce. Lettuce prices rose sharply in the first half of 2026 due to hot weather in Arizona, where about one-third of America’s lettuce is grown. Now, restaurants are dealing with the fallout from a cyclospora outbreak linked to shredded lettuce that has sickened thousands of Americans. It has become a problem.
Yum Brands, the parent company of Taco Bell, said that Taco Bell’s U.S. same-store sales are down 2% so far in the July-September period due to customers’ concerns over the outbreak. That compares to a 7% same-store sales increase in the April-June period. Federal health officials first tied the diarrhea-causing outbreak to shredded iceberg lettuce served at Taco Bell restaurants in Indiana, Kentucky, Michigan, Ohio and West Virginia. Later, the U.S. Food and Drug Administration said customers in Illinois, Kansas, Oklahoma and Pennsylvania were also affected.
Taco Bell removed shredded iceberg lettuce supplied by Taylor Farms from its U.S. restaurants on July 17. The following day, Taylor Farms recalled iceberg lettuce grown in central Mexico. Taco Bell’s sales bottomed out the weekend of July 18-19 but have been steadily improving since then, Yum Brands Chief Financial Officer Ranjith Roy said Thursday in a conference call with investors. Over the last four days, Taco Bell’s U.S. sales have climbed halfway back to their year-ago level, he said.
Yum Brands CEO Chris Turner said Taco Bell’s quick action to contain the issue and its clear communication on social media helped bring diners back. The brand also enticed fans with daily specials like $1 Mexican pizza.
