Yum! Brands Q2 Preview: All Eyes On The Taco Outlook

Yum! Brands, the owner of Taco Bell, will release its Q2 on Thursday, July 30. Ahead of the release, YUM shares have come under pressure following news that Taco Bell was linked to the recent Cyclospora outbreak. The reversal in sentiment marks an unfortunate speed bump in the restaurant operator's previous momentum that was due in large part to a resurgence in revenue growth from Taco Bell. I am expecting the management team to be pressed on the forward outlook from here. I view shares as a ‘hold’ for the current operating environment.

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There’s nothing yummy about being linked to an outbreak that headlines with ‘explosive diarrhea,’ but that is unfortunately the predicament Yum! Brands (YUM) finds itself in. Shares in the restaurant operator have declined over the past month.