05 December 2006


One of the top stories last night on channel 4, after I typically sorta enjoyed Studio 60, featured an E. coli break at Taco Bell restaurants throughout North Jersey and Long Island.

Here's an excerpt fron the AP story at the NY Times:

It is not immediately clear whether the New Jersey and Long Island
outbreaks are related. A Taco Bell restaurant in South Plainfield,
N.J., where 11 of the people who were sickened ate, has been closed
for inspection. Four Taco Bell outlets in Suffolk County were closed,
and Nassau County officials asked that another four of its locations
in their county be closed.

Nassau County Executive Tom Suozzi said the restaurant chain had yet
to respond to the request, but said company officials were cooperating
with the county health department. He said the closures were being
sought "out of an abundance of caution."

YUM is running like a bull in Pamplona.(Check out the chart below) Today's E. coli story didn't
trip up the toro one bit, but will the news take hold tomorrow? Or is the idea of Taco Bell serving tainted "meat" already priced into the stock?

I appreciate that Taco Bell responded immediately to the outbreak by closing stores.

I'm curious to see if this episode challenges the intestinal fortitude of YUM shareholders, and affects the stock today.

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