Americans can't get enough of Taco Bell
In a time when fast food chains are releasing deals to juice sluggish sales as inflation and tariffs threats weigh heavily on the American consumer, one company is bucking the trend: Taco Bell.
The Crunchwrap Supreme and Mexican Pizza purveyor is forecasting 8% sales growth this quarter at stores open at least a year, far outpacing its fellow fast food rivals that have recently revealed a spate of warnings about a tough beginning of the year because of snowy weather and the economy.
Part of the magic, according to Taco Bell CEO Sean Tresvant, is the chain's focus on value, notably its 'Luxe Cravings Box,' which has expanded to multiple price points ranging $5 to $9, and the seemingly endless release of buzzy menu items that capture younger eaters.
'When you look at where the American consumer is at, there's a lot going on,' Tresvant told CNN. 'But we believe because we're a category of one, especially when you look at the magic formula of value, innovation, digital sales and brand buzz. We're shielded from consumer pressures.'
He added: 'We are a unique brand that can weather the literal and philosophical storms.'
Taco Bell held its 'Live Más Live' event Tuesday in Brooklyn, where it gathers its most rabid fans to announce what the brand is releasing this year and what it's cooking in the test kitchen, like turning its Mexican Pizza into empanadas and poutine fries.
Successfully capturing the culturural zeitgeist is why Taco Bell said it's doubling the amount of new items its adding to menus this year compared to 2024 and part of the chain's push into more sectors, such as beverages, desserts and soon revamping its breakfast menu.
Taco Bell struck gold with its take on chicken nuggets, which sold out in two weeks after their December launch, but will return this year for 21 weeks. The chain's 'Cantina Chicken' menu, which uses oven-roasted, shredded chicken for various items including tacos and salads, also recently expanded to include a spicy version with the aim of it becoming a $5 billion brand by 2030.
'We're not the first to do chicken, but we want to do chicken very uniquely,' he said. 'Chicken is a protein that's trending and we need to make sure we are consumer relevant.'
Despite Taco Bell's aggressive growth plan — the company is aiming for each US restaurant to generate $3 million in revenue, up from $2.2 million, and triple its international store count by 2030 — Tresvant is aware of the reality of tariffs.
'Value is our roots, we'll continue to be a value brand and we'll adjust accordingly,' he said. 'From a cost standpoint, it's new and we still got to look through things as new information comes out.'
Shares of Taco Bell's parent company Yum Brands (YUM) rose as much as 2% Tuesday.
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