Taco Bell's Beef Recall Could Be More Serious Than "Tortillapocalypse"
Taco Bell recalled 2.3 million pounds of beef from restaurants in 21 states because metal filings were found by a customer, and though the Yum! Brands (NYSE: YUM) Mexican food chain seems to have moved swiftly and exhibited an abundance of caution with its response, this still could weigh heavily on its performance.
Because the recall comes so soon after Taco Bell's "tortillapocalypse," when it ran out of the tortillas used across most of its menu, the beef recall could raise concerns in consumers' minds about the efficacy of the food, leading to a cascade of events such as struck its fast-casual rival Chipotle Mexican Grill (NYSE: CMG). In Chipotle's case, an outbreak of food-borne illness ended up decimating sales and causing the stock to crater.
Source Fool.com