It’s Nacho Average Lawsuit: Taco Bell Accused of Skimping on Beef in Crunchwraps and Mexican Pizzas
Key takeaways
- Taco Bell is being sued as one enraged customer alleges the restaurant chain is skimping on fillings
- A mixed earnings beat from the company saw sales slow for Taco Bell and a missed revenue target
- Yum! Brands’ share price has slid 0.9% in the last five days
Everyone’s had a sub-par fast food meal before, but one Taco Bell customer was so incensed by his Mexican Pizza that he sued. The fast food chain now faces a $5 million class action lawsuit in New York concerning skimping on fillings for many of its beloved dishes. Did the news take a bite out of the stock? Here’s the latest.
Everyone likes to indulge in treats like fast food now and then. But did you know that your portfolio can do the same? Q.ai’s Guilty Pleasures Kit is your one-stop shop to invest in the hedonistic things in life: think tobacco, alcohol and gambling. It’s all handled by a unique AI algorithm that assesses the data, predicts the winning assets and adjusts the Kit’s holdings to help reduce risk and maximize returns.
Download Q.ai today for access to AI-powered investment strategies.
What’s the Taco Bell lawsuit about?
A class action lawsuit filed this week has accused fast-food restaurant Taco Bell of falsely advertising how much beef it includes in popular items like the Crunchwrap and Mexican Pizza.
The plaintiff alleges the pizza he purchased from the brand’s Ridgewood location “contained approximately half of the beef and bean filling that he expected” and, in all fairness, served up a pretty convincing side-by-side comparison.
The lawsuit is filed for $5 million to be awarded to anyone who ordered a Crunchwrap Supreme®, Grande Crunchwrap®, Vegan Crunchwrap®, Mexican Pizza, or Veggie Mexican Pizza from any New York state Taco Bell branch since July 2020. We’re guessing that’s a lot of people.
Has there been an impact on the share price?
Taco Bell is owned by Yum! Brands, who also have KFC, Pizza Hut and Yo! Sushi under their belt. The company’s share price has fallen 0.9% in the last few days, but that’s likely more to do with the mixed earnings beat Yum! Brands has just posted.
Earnings per share for Yum came in at $1.41 adjusted, beating the $1.24 expected. However, revenue fell short of forecasts, arriving at $1.69 billion instead of the $1.75 billion predicted. Taco Bell stores missed growth estimates, with sales rising 4% compared to the 4.3% anticipated.
But investors shouldn’t despair — Yum! Brands has still gained 6.72% on its stock price this year.
The bottom line
This class action lawsuit probably isn’t going to hit Taco Bell’s bottom line any time soon, but it could hurt its reputation. The so-so earnings beat stirred the pot for the share price instead, but there’s still time for Yum! Brands to spice things up and turn the ship around.
Did you know your portfolio can also have its share of indulgence? Say hello to Q.ai’s Guilty Pleasures Kit, your ticket to a flavorful investment mix with tobacco, alcohol and other sinful sectors. An intelligent AI takes care of the gritty details, analyzing data, forecasting winners, and tuning the Kit’s holdings to help you curb risk while pumping up your returns.
Download Q.ai today for access to AI-powered investment strategies.
