{"id":40161,"date":"2023-11-01T19:40:38","date_gmt":"2023-11-01T19:40:38","guid":{"rendered":"https:\/\/prosfunds.com\/business\/taco-bell-is-gaining-ground-as-people-look-to-save-on-food\/"},"modified":"2023-11-01T19:40:41","modified_gmt":"2023-11-01T19:40:41","slug":"taco-bell-is-gaining-ground-as-people-look-to-save-on-food","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=40161","title":{"rendered":"Taco Bell is gaining ground as people look to save on food"},"content":{"rendered":"
\n

\n With interest rates high, student loan repayments back and elevated prices of consumer goods, many Americans are pulling back on spending. But not at Taco Bell.\n <\/p>\n

\n The fast food chain, which has long emphasized its cheap eats, said that unlike some of its competitors, it\u2019s been seeing growth across all income levels as customers flock to its value deals and trade down from pricier options.\n <\/p>\n

\n In the US, Taco Bell is seeing 2-3% growth in the number of orders \u201cacross all income levels,\u201d said David Gibbs, CEO of Taco Bell\u2019s parent company Yum Brands, during an analyst call Wednesday discussing the company\u2019s third quarter financial results. Yum Brands also owns KFC, Pizza Hut and the Habit Burger Grill.\n <\/p>\n

\n \u201cSo our stores in lower-income trade areas are performing well \u2026 just like our stores in high-income trade areas,\u201d he said. <\/strong>Sales at Taco Bell\u2019s US stores open at least a year jumped 8% in the third quarter, year over year.\n <\/p>\n

\n
\n <\/source><\/source><\/source><\/source><\/picture>\n <\/div>\n<\/div>\n

\n At Taco Bell, customers can buy a combo meal, including a fountain drink, burrito, taco and cinnamon twists for dessert, for about $5. The chain also still offers food for $1, making it something of an exception in the industry.\n <\/p>\n

\n Taco Bell\u2019s website shows a cheesy bean and rice burrito; spicy potato soft taco; and cheesy roll-up available for $1 each. Even its higher-priced, limited time offerings are relatively inexpensive: The much-publicized volcano taco was priced at about $2.49 \u2014 less than an order of McDonald\u2019s fries, in some locations.\n <\/p>\n

\n Fast food chains are constantly walking the line between offering margin-squeezing deals and losing customers if prices get too high. Taco Bell\u2019s relatively inexpensive ingredients and small serving sizes \u2014 plus its own focus on value \u2014\u00a0help put it in a sweet spot.\n <\/p>\n

\n And in the third quarter, customers didn\u2019t only go for the cheapest items, helping keep the Taco Bell\u2019s margins high.\n <\/p>\n

\n Sales of value items remained within the chain\u2019s target range, said Gibbs, adding that the market positioning helped Taco Bell maintain profit margins of 24%, a level he described as \u201cindustry-leading.\u201d Globally, Yum\u2019s same-restaurant sales jumped 6% in the quarter, and the company added new locations across its three largest brands of Taco Bell, Pizza Hut, and KFC. Shares of the company were more or less flat during trading hours Wednesday.\n <\/p>\n

\n Taco Bell is also benefiting from <\/strong>people searching for less expensive food options, <\/strong>Gibbs said. Other fast food chains have also clocked customers trading down, with mixed results.\n <\/p>\n

\n Some other fast food brands are also seeing more customers <\/strong>thanks to the trend. Wingstop, for example, is finding that when customers start looking to save on food, they start thinking about chicken wings.\n <\/p>\n

\n When customers ditch pricier options, \u201cWingstop is uniquely positioned to gain more new guests,\u201d CEO Michael Skipworth said Wednesday during an analyst call discussing quarterly results. Wingstop\u2019s domestic same-restaurant sales, which include sales at restaurants open at least a year, jumped 15.3% in the third quarter.\n <\/p>\n

\n At McDonald\u2019s, results were more mixed.\n <\/p>\n

\n \u201cWe continue to gain share with both the middle- and higher-income consumers,\u201d said McDonald\u2019s CFO Ian Borden during an analyst call this week discussing third-quarter result, noting that the trend is thanks in part to \u201cthe trade-down from more expensive alternatives.\u201d\n <\/p>\n

\n But the burger chain, which said it expects prices to be up a little over 10% for the year, is seeing lower-income customers falter.\n <\/p>\n

\n \u201cWe\u2019ve been talking about how the consumer is more discriminating because of all the price pressures that they\u2019re facing,\u201d CEO Chris Kempczinski said during the call, adding that \u201cwhat you end up seeing is that the pressure is felt more on the lower-income consumer.\u201d Kempczinski called this an industry-wide trend. At McDonald\u2019s US locations open at least 13 months, sales still grew 8.1% in the quarter.\n <\/p>\n

\n Denny\u2019s described a similarly mixed dynamic.\n <\/p>\n

\n \u201cWe do believe that casual [dining] probably is trading down into us, but we also believe that we\u2019re probably trading down into [quick-service restaurants] a little bit,\u201d said Denny\u2019s CFO Robert Verostek during an analyst call this week, also discussing third-quarter results. Sales at Denny\u2019s restaurants open at least a year ticked up 1.8% in the third quarter, compared to the same period last year.\n <\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

With interest rates high, student loan repayments back and elevated prices of consumer goods, many Americans are pulling back on spending. But not at Taco Bell. The fast food chain, which has long emphasized its cheap eats, said that unlike some of its competitors, it\u2019s been seeing growth across all income levels as customers flock […]<\/p>\n","protected":false},"author":1,"featured_media":40162,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-40161","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\nTaco Bell is gaining ground as people look to save on food | Prosfunds<\/title>\n<meta name=\"description\" content=\"With interest rates high, student loan repayments back and elevated prices of consumer goods, many Americans are pulling back on spending. But not at Taco\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/prosfunds.com\/?p=40161\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Taco Bell is gaining ground as people look to save on food | Prosfunds\" \/>\n<meta property=\"og:description\" content=\"With interest rates high, student loan repayments back and elevated prices of consumer goods, many Americans are pulling back on spending. But not at Taco\" \/>\n<meta property=\"og:url\" content=\"https:\/\/prosfunds.com\/?p=40161\" \/>\n<meta property=\"og:site_name\" content=\"Prosfunds\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-01T19:40:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-01T19:40:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/11\/1698867639_w_800.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/prosfunds.com\/?p=40161#article\",\"isPartOf\":{\"@id\":\"https:\/\/prosfunds.com\/?p=40161\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6\"},\"headline\":\"Taco Bell is gaining ground as people look to save on food\",\"datePublished\":\"2023-11-01T19:40:38+00:00\",\"dateModified\":\"2023-11-01T19:40:41+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/prosfunds.com\/?p=40161\"},\"wordCount\":722,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/prosfunds.com\/#organization\"},\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/prosfunds.com\/?p=40161#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/prosfunds.com\/?p=40161\",\"url\":\"https:\/\/prosfunds.com\/?p=40161\",\"name\":\"Taco Bell is gaining ground as people look to save on food | Prosfunds\",\"isPartOf\":{\"@id\":\"https:\/\/prosfunds.com\/#website\"},\"datePublished\":\"2023-11-01T19:40:38+00:00\",\"dateModified\":\"2023-11-01T19:40:41+00:00\",\"description\":\"With interest rates high, student loan repayments back and elevated prices of consumer goods, many Americans are pulling back on spending. But not at Taco\",\"breadcrumb\":{\"@id\":\"https:\/\/prosfunds.com\/?p=40161#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/prosfunds.com\/?p=40161\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/prosfunds.com\/?p=40161#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/prosfunds.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Taco Bell is gaining ground as people look to save on food\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/prosfunds.com\/#website\",\"url\":\"https:\/\/prosfunds.com\/\",\"name\":\"Funding Factories\",\"description\":\"Latest Finance News and Updates\",\"publisher\":{\"@id\":\"https:\/\/prosfunds.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/prosfunds.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/prosfunds.com\/#organization\",\"name\":\"Funding Factories\",\"url\":\"https:\/\/prosfunds.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png\",\"contentUrl\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png\",\"width\":780,\"height\":140,\"caption\":\"Funding Factories\"},\"image\":{\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png\",\"contentUrl\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/prosfunds.com\"],\"url\":\"https:\/\/prosfunds.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Taco Bell is gaining ground as people look to save on food | Prosfunds","description":"With interest rates high, student loan repayments back and elevated prices of consumer goods, many Americans are pulling back on spending. But not at Taco","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/prosfunds.com\/?p=40161","og_locale":"en_US","og_type":"article","og_title":"Taco Bell is gaining ground as people look to save on food | Prosfunds","og_description":"With interest rates high, student loan repayments back and elevated prices of consumer goods, many Americans are pulling back on spending. But not at Taco","og_url":"https:\/\/prosfunds.com\/?p=40161","og_site_name":"Prosfunds","article_published_time":"2023-11-01T19:40:38+00:00","article_modified_time":"2023-11-01T19:40:41+00:00","og_image":[{"width":800,"height":450,"url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/11\/1698867639_w_800.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/prosfunds.com\/?p=40161#article","isPartOf":{"@id":"https:\/\/prosfunds.com\/?p=40161"},"author":{"name":"News Room","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6"},"headline":"Taco Bell is gaining ground as people look to save on food","datePublished":"2023-11-01T19:40:38+00:00","dateModified":"2023-11-01T19:40:41+00:00","mainEntityOfPage":{"@id":"https:\/\/prosfunds.com\/?p=40161"},"wordCount":722,"commentCount":0,"publisher":{"@id":"https:\/\/prosfunds.com\/#organization"},"articleSection":["Business"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/prosfunds.com\/?p=40161#respond"]}]},{"@type":"WebPage","@id":"https:\/\/prosfunds.com\/?p=40161","url":"https:\/\/prosfunds.com\/?p=40161","name":"Taco Bell is gaining ground as people look to save on food | Prosfunds","isPartOf":{"@id":"https:\/\/prosfunds.com\/#website"},"datePublished":"2023-11-01T19:40:38+00:00","dateModified":"2023-11-01T19:40:41+00:00","description":"With interest rates high, student loan repayments back and elevated prices of consumer goods, many Americans are pulling back on spending. But not at Taco","breadcrumb":{"@id":"https:\/\/prosfunds.com\/?p=40161#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/prosfunds.com\/?p=40161"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/prosfunds.com\/?p=40161#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/prosfunds.com\/"},{"@type":"ListItem","position":2,"name":"Taco Bell is gaining ground as people look to save on food"}]},{"@type":"WebSite","@id":"https:\/\/prosfunds.com\/#website","url":"https:\/\/prosfunds.com\/","name":"Funding Factories","description":"Latest Finance News and Updates","publisher":{"@id":"https:\/\/prosfunds.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/prosfunds.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/prosfunds.com\/#organization","name":"Funding Factories","url":"https:\/\/prosfunds.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/","url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png","contentUrl":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png","width":780,"height":140,"caption":"Funding Factories"},"image":{"@id":"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/image\/","url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png","contentUrl":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png","caption":"News Room"},"sameAs":["https:\/\/prosfunds.com"],"url":"https:\/\/prosfunds.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/40161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40161"}],"version-history":[{"count":1,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/40161\/revisions"}],"predecessor-version":[{"id":40163,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/40161\/revisions\/40163"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/media\/40162"}],"wp:attachment":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}