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2 Reasons Taco Bell’s Turnaround Is Working

Newly introduced breakfast menu and taco line drive sales


With Taco Bell’s first-quarter same-store sales up 6%, it looks like Yum! Brands (NYSE:YUM) turnaround strategy for the chain is making progress.

So, why is Taco Bell doing better?

Business Insider reports that on the company’s conference call to discuss the quarterly results, company officials cited two reasons why the fast-food chain has improved its performance.

  1. Doritos Locos Tacos. Everyone loves Doritos, it seems. When Taco Bell added the popular snack chip to a Taco recipe, consumers took notice and sales jumped. CFO Rick Carucci described Doritos Locos Tacos as an “enormously successful product introduction.”
  2. A new breakfast menu. People might not naturally associate Taco Bell’s fare with breakfast, but CEO David Novak called the early results of the new offering “encouraging.” And the company plans to greatly expand its availability beyond 750 stores now selling breakfast.

While the quarterly results were hopeful, Business Insider pointed out that Taco Bell was still nowhere close to matching the business of rival Mexican food chain, Chipotle Mexican Grill (NYSE:CMG), which posted sharp jumps in revenue and profits last quarter.

Article printed from InvestorPlace Media,

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