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| Taco Bell is successfully retaining low-income customers despite industry concerns. Yum! Brands CEO David Gibbs noted that Taco Bell's outlets in low-income areas outperformed others, indicating strong customer loyalty. The chain's revamped $3-and-under value menu has exceeded expectations, providing a competitive edge while maintaining franchisee profitability. Despite rising fast-food prices nationwide, Taco Bell's digital sales surged, with 31% of US orders placed digitally. Overall, Taco Bell remains a key contributor to Yum! Brands' US sales and profits, showcasing resilience and adaptability in a competitive market. |
| Taco Bell, in contrast to some fast-food chains, has shown to be successfully retaining lower-income customers, according to Yum! Brands CEO David Gibbs. Despite industry concerns about affordability amid rising prices, Taco Bell’s stores in low-income areas outperformed the rest of the system throughout 2023 and in Q4. This strength is attributed to Taco Bell’s reputation for value among U.S. consumers. Gibbs highlighted Taco Bell’s $3 and Under menu, noting that it is “a value leader.” “It’s a real competitive advantage for us, and it’s designed to maintain franchisee profitability,” Gibbs said. |
| Yum! Brands witnessed substantial unit growth in 2023, opening 4,754 gross new units globally, with 87% from international markets. CFO Chris Turner said Pizza Hut also set record openings for the year, while Taco Bell opened 201 restaurants in Q4 and 417 restaurants in 2023. “In the U.S., (Taco Bell) unit development is on fire, with 244 gross new units,” he said. Kiosks also remain a priority for the company, as Turner said they drive higher tickets and streamline operations. There are now 500 KFC U.S. locations equipped with kiosks, while Taco Bell and The Habit Burger have also rolled out the systems. |
| Yum! Brands CEO David Gibbs highlighted significant growth during the Q4 earnings call. In 2023, Yum! opened a record-breaking 4,754 restaurants, surpassing $60 billion in sales, with digital sales contributing over 45%. Over 15,000 of their 58,708 locations worldwide are three years old or younger, showcasing franchisees’ commitment to long-term brand success. KFC and Pizza Hut achieved impressive milestones, aiming to surpass 30,000 and 20,000 outlets respectively. Taco Bell’s U.S. sales increased by 3% in Q4, reaching $15 billion in system sales, driven by digital channels and a robust value menu. |
| Yum! Brands recently reported its fourth-quarter earnings, revealing a significant shift towards digital ordering. During the earnings call, executives at the company highlighted the growing importance of self-ordering kiosks, which accounted for 31% of Taco Bell's sales in the quarter. This surge in digital sales reflects a broader trend in the industry, with Yum! Brands emphasizing the expansion of kiosk technology across its brands worldwide. Additionally, Yum! Brands disclosed plans to leverage AI capabilities to enhance digital platforms, signaling a strategic focus on innovation and technology-driven growth. |
| Yum! Brands is doubling down on digital and technology investments, with digital sales soaring by 22% amid global challenges. Taco Bell saw a record 31% mix of digital sales, fueled by a surge in kiosk usage. Plans for 2024 include enhancing the loyalty program and implementing AI-driven capabilities for personalized up-selling and dynamic pricing. Yum!'s strategy mirrors efforts by other quick-service giants like Chipotle and McDonald's, capitalizing on consumer interest in personalized offers and digital engagement. |
| In 2023, KFC experienced a remarkable 20% sales growth in China, contributing significantly to its global revenue. Despite challenges in the U.S. market, KFC's success in China offset flat sales elsewhere. The Chinese market remains pivotal for KFC, driving one-third of its total revenue. Meanwhile, McDonald's, though facing slower growth in China, continues its aggressive expansion plans in the country. |
| Yum! Brands reports its fourth-quarter 2023 earnings |
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| McDonald’s CEO Chris Kempczinski announced on a Q4 2023 earnings call that its loyalty program now spans 50 global markets, boasting over 150 million members. Despite this, loyalty members represent a fraction of its customer base. McDonald’s aims to grow its program to 250 million users, targeting $45 billion in annual sales by 2027. Kempczinski highlighted plans to personalize digital offers and enhance customer experience through technology investments, including the Ready on Arrival program. |
| In 2023, Chipotle opened a record-breaking 271 restaurants, with 238 featuring Chipotlanes, marking the highest quarterly and annual openings in the company’s history, according to CEO Brian Niccol. With plans to open 285 to 315 new restaurants in 2024, over 80% will include Chipotlanes, potentially surpassing 1,000 by year-end. Chipotlanes drive 15% higher sales and higher margins compared to traditional locations, contributing to the chain’s goal of reaching 8% to 10% unit growth by 2025. |
| Domino’s Pizza is offering a “Perfect Combo” deal ahead of the Super Bowl, including two medium one-topping pizzas, a two-liter bottle of Coke, eight Cinnamon Bread Twists and 16 Parmesan Bread Bites for under $20. Priced at $19.89, a reference to Taylor Swift’s 2014 album, and promo code 1387, alluding to Swift’s lucky number and Travis Kelce’s jersey number, fans can receive the offer until February 11. Domino’s expects high sales during the Super Bowl, typically selling over two million pizzas on game day. |
| The U.S. Supreme Court has agreed to hear Starbucks’ appeal regarding a labor-related lawsuit involving seven previously fired workers in Memphis. The case will determine the scope of the National Labor Relations Board’s power and could set a precedent for future labor disputes. If Starbucks wins, it may become harder for the NLRB to obtain injunctions against alleged unfair labor practices, potentially impacting unionization efforts. Conversely, a loss for Starbucks could embolden employees and strengthen the unionization movement. |
| TEAM Schostak Family Restaurants (TSFR) has promoted John Andrews to Chief Operating Officer, recognizing his decade-long leadership within the company. Having joined in 2012, Andrews has overseen significant brands like Applebee’s and Olga’s Kitchen. His tenure includes leading the remodeling of 40 Applebee’s restaurants in Michigan. Andrews will continue to manage Applebee’s, Olga’s Kitchen and MOD Pizza, with increased involvement in TSFR’s Wendy’s locations. Additionally, he will oversee facilities, marketing, training and now human resources. |
| Whataburger has introduced the WhataWings Party Pack, featuring 72 boneless wings in four signature sauces, a family-size order of French fries and a choice of eight dipping sauces. Following the success of WhataWings, this party-ready spread caters to football night gatherings. Available for pre-order through the Whataburger App with no cutoff time, the pack joins the restaurant’s popular offerings like the Whataburger Box. |
| Hart House, the plant-based restaurant chain co-owned by Kevin Hart, is offering vegan burgers, chicken sandwiches and shakes in Los Angeles. CEO Andy Hooper emphasized the focus on tasty, affordable and convenient food over highlighting the plant-based aspect. Despite recent challenges in the plant-based market, Hart House’s approach is paying off, with sales up 350% in 2023. |
| Moe’s Southwest Grill has introduced the Blazin’ Birria Taco as a limited-time menu item, featuring shredded beef birria, cheese, pico de gallo, jalapeños and Kickin’ Cayenne Sauce in a crispy red corn tortilla shell. Available at all locations while supplies last, customers can also opt for any taco with the red shell during this promotion. Shredded beef birria, a new protein option, was launched in January, slow-cooked in chiles and garlic. Additionally, Moe’s offers a Valentine’s Day deal until February 14, providing a free Blazin’ Birria Taco with any purchase at participating locations. |
| A bill introduced in the California legislature aims to broaden exemptions for fast-food restaurants from paying a $20 minimum wage to include establishments in casinos, airports, theme parks and other noncommercial settings. Sponsored by Assemblyman Chris Holden, who also sponsored the $20 fast-food wage bill, reasons for the exemptions were not disclosed. The current law exempts smaller chain units, bakeries and quick-service restaurants in supermarkets. The $20 minimum wage, a compromise between the industry and labor unions, is set to affect an estimated 500,000 workers statewide. |
| A California state court judge dismissed media mogul Byron Allen’s $100 million discrimination lawsuit against McDonald’s, ruling in favor of the fast-food chain. The judge agreed with McDonald’s argument that the lawsuit lacked merit and violated California’s anti-SLAPP statute, which allows for the dismissal of cases tied to free speech. McDonald’s stated the decision confirmed their stance against false narratives and extortion tactics. Allen’s attorney plans to appeal, citing a California law prohibiting false statements to the public. |
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