Taco Bell Value Meals Drive Sales As Yum Brands Reports Earnings

Yum Brands reported strong fourth-quarter and full-year results, fueled by Taco Bell's value-driven menu.

The fast food giant made $885 million in company sales in Q4, up from $647 million in 2023.

Yum Brand made over $9 billion in digital system sales last year, the company's quarterly earnings report.

"2024 was marked with exceptional core operating profit growth given the complex consumer environment," CEO David Gibbs said.

Gibbs said the Taco Bell division contributed a significant portion of the growth.

"Our twin growth engines remain strong with Taco Bell U.S. delivering same-store sales growth of 5% in the fourth quarter, meaningfully outpacing the industry," he said.

The fast food chain saw a 5% same-store sales increase in Q4 and 14% system sales growth, outperforming industry trends.

For the full year, Taco Bell's sales grew by 8% in the U.S. with international sales rising 6%.

The brand's franchise and property revenues jumped from $281 million in 2023 to $319 million in 2024, while operating profit increased from $286 million to $340 million.

Gibbs credited Taco Bell's success to its affordable meal options and innovation that attracts young consumers.

The company has rolled out new offerings like the Taco Bell Chicken Nuggets meal that features new dipping sauces to attract Gen-Z customers.

Value meals contributed to 8% core operating profit growth.

KFC International, which is also part of Yum Brands, added over 2000 new units.

Yum Brands says it opened 4,535 restaurants worldwide last year.

The company is growing its digital presence and announced an AI-driven product named Byte by Yum! that aims to grow digital sales.

Last year, Taco Bell rolled out AI drive-thrus in multiple locations.

In January, the company announced the promotion of Scott Mezvinsky to the CEO role for the KFC division.