Yum Set for Solid 2Q Despite Lettuce Safety Overhang -- Market Talk

1140 ET - Setting aside the recent investor focus on food safety from the Taylor Farms lettuce recall, Yum Brands is set to show off its accelerating growth trajectory when it reports 2Q results this week, UBS analysts say in a research note. Both KFC and Taco Bell are well positioned for further gains, they say. The pair of restaurants are showing progress on strategic initiatives despite being affected by higher gas prices and broader macro pressures, the analysts say. Investor expectations for 2Q include 6% growth in same store sales at Taco Bell, they say. Management will likely provide some commentary on the impact of the cyclosporiasis outbreak tied to the recall, which may have some impact on core operating profit growth for the year, the analysts say. But pressures will prove to be temporary and not have a lasting impact on brand perceptions, they say. (dean.seal@wsj.com)

(END) Dow Jones Newswires

July 27, 2026 11:40 ET (15:40 GMT)