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Direct exposure to a food-safety-linked supply disruption could raise COGS and impact traffic; uncertainty remains until a confirmation of the link and any recalls, making near-term risk modest but plausible.
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Mexico's health and agriculture ministries said they are investigating a large U.S. foodborne illness outbreak linked to iceberg lettuce grown in Mexico and sold at Taco Bell. If confirmed, the situation could prompt lettuce supply disruptions and price volatility, potentially raising Taco Bell's ingredient costs and weighing on YUM's near-term unit economics and traffic.
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