Irvine-based Taco Bell laid out an ambitious growth strategy for 2025 during an investor event last week, where CEO Sean Tresvant emphasized the company’s strong financial performance and plans to take “bold swings” as an industry disruptor.
In 2024, Taco Bell achieved a record $1 billion in annual operating profit, reached 24% restaurant-level margins in company-owned stores, and saw digital sales grow 32% to $6 billion. Systemwide sales, which include independent franchises, climbed 8% to $17.1 billion in 2024.
The fast-food chain, the best performer within the Yum Brands Inc. portfolio, forecasts an 8% increase in U.S. same-store sales in the first quarter of 2025, fueled by menu innovation, value-driven promotions and digital engagement.
During the New York event, Taco Bell billed its latest business plan as R.I.N.G. The Bell (Relentlessly Innovative Next-Generation Growth), which aims to boost U.S. average unit volumes from $2.2 million to $3 million and expand its global footprint from 1,150 locations in 2024 to over 3,000 by 2030.
“People love our brand because we do things differently,” Tresvant said. “But we also mean business; we have a strong strategy that keeps our consumers and restaurant teams top of mind. The bold swings will only get bigger as we continue to chase greatness.”
Merchandise Deals, Menu Innovation
At its annual Live Más LIVE event, also held in New York on March 4, Taco Bell revealed more than 30 new test kitchen menu items in development, including the Mexican Pizza Empanada, Queso Fundido Rolled Chicken Taquitos, Poutine Fries and a Short Rib Chile Relleno Burrito. The chain also said it plans to bring back fan-favorite items like Cool Ranch Doritos Locos Tacos and Double Decker Tacos.
The event also introduced Taco Bell’s latest beverage-focused concept, Live Más Café, and major brand collaborations, including merchandise inspired by Tony Hawk’s Pro Skater game and a golf apparel collection with Bad Birdie.
Wall Street Embraces Brand Buzz
Analysts have called Taco Bell the premier unit of parent Yum Brands, which also includes KFC and Pizza Hut as well as Irvine-based Habit Burger & Grill. In the past five weeks since Yum reported fourth quarter results and Taco Bell had its investor day, shares have risen 22% to $159.37 and a $44.5 billion market cap.
“We attended the Taco Bell Consumer Day in NY and came away encouraged by the path ahead for the brand, with tangible drivers behind 2030 targets,” Jefferies analyst Andy Barish wrote in a March 4 note.
Mark Kalinowski, president and CEO of Kalinowski Equity Research, said the chain’s forecast of an 8% increase in Q1 2025 same-store sales exceeded his 5% growth projection.
“In the context of so many large restaurant chains struggling with their Q1 same-store sales, a 5% gain would have been impressive enough,” he wrote.
With Taco Bell now expected to reach 8% same-store sales —well above sell-side consensus—Kalinowski said, “it’s clear that Taco Bell’s brand differentiation, menu innovation, effective marketing and more are all working in exquisite harmony.”
As for the chain’s plans to expand internationally, Barish noted that growth could be a “heavier lift” for Taco Bell as the brand is still in the “early stages of penetration/awareness outside the U.S.”
Still, he said he sees “encouraging signs in the near term,” as the brand has made inroads in countries including Spain, India and Guatemala, where Taco Bell is “executing” a playbook centered on brand buzz, value and innovation.
“The U.S. QSR environment remains tough, but TB is clearly outperforming in the near term, with more opportunities on the horizon, including internationally,” Barish wrote.
