Yum charts Taco Bell turnaround

LOUISVILLE, Ky. — Taco Bell's sales are slumping since a lawsuit later dropped questioned the beef content of its taco filling, but the chain's parent company expects a turnaround next year with the introduction of new products.

Yum Brands CEO David Novak told industry analysts Wednesday that the chain will be “reinventing the taco” with new products early next year. Novak said the new menu items will offer a “significant uplift” to Taco Bell's business.

The chain had a two percent drop in third-quarter revenue at its restaurants open at least a year.

The chain accounts for about 60 percent of Yum's U.S. profit.

Taco Bell has struggled to overcome publicity from the suit that claimed its taco filling didn't contain enough beef to be called that. The suit was later dropped.

Yum Brands shares fell 2.6 percent to $48.14 in morning trading.