Here’s Why YUM Brands Taco Bell Beef Costs are About to Skyrocket

This story from Wall Street Cheat Sheet

Where’s the beef? That’s what an Alabama law firm is asking Taco Bell in a new lawsuit alleging the YUM Brands (NYSE:YUM) fast-food chain uses only ~35% beef in its “ground beef”.

The lawsuit states the other 65% of what Taco Bell lovers eat is binders, extenders and other ingredients, including:

“water, wheat oats, soy lecithin, maltodrextrin, anti-dusting agent and modified corn starch.”

If the study is true, YUM Brands must set aside more than just a one time legal expense. The fast-food conglomerate will be on the hook for a MAJOR margin reducing expense for real ground beef.

The law firm of Beasley, Allen, Crow, Methvin, Portis & Miles claims they are not seeking any money, just a change to Taco Bell’s ingredients to comply with USDA food regulations.

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