For whom the Taco Bell tolls

Taco Bell's parent company reported its earnings on Feb. 12, and this feature in the Orange County Register looks at the dark results.
From the story:

For the quarter, blended same-store sales at Yum! Brands, which also owns KFC and Pizza Hut, dropped 2 percent, the company reported late today. Same-store sales are a key indicator of a restaurant's financial health.
The primary driver behind the decline was Taco Bell, which saw a 5 percent drop in same-store sales during the quarter, the company said. The drop marked the biggest quarterly decline for the chain in at least two years.
Yum said sales reflect "a very significant negative sales impact during the month of December from adverse publicity related to a produce-sourcing issue."
In December, federal health authorities said shredded lettuce was the source of the foodborne illness, though agencies never found evidence of E. coli in any Taco Bell ingredient. Officials also said the food was likely contaminated at the farm level, not inside any restaurant.
Since the outbreak, Taco Bell said it has worked closely with its suppliers to step up safety measures, including implementing testing for E. coli at the field level.

TK: A 5% drop in fourth quarter sales is sobering. The stakes are certainly high for all food service operators, since their livelihood depends on maintaining public confidence in their brand. Being rigorous and tough on produce suppliers is a given in this environment.