Here's Why Taco Bell's Turnaround Strategy Is Working So Far

taco bell

Photo: By othermore on Flickr

Taco Bell’s sales are beginning to turn around. Parent Yum! Brands announced yesterday that its same-store sales for Taco Bell jumped 6 per cent in Q1.What sparked the short-term success? Product rollouts.

Here are two big reasons Taco Bell’s fortunes seem to be changing, which were identified in its Q1 earnings call:

Doritos Locos Tacos — The new tacos got a ton of hype when they went national in March, and that has translated into sales for Taco Bell. CFO Rick Carucci characterised the launch as “as enormously successful product introduction.”

The breakfast menu — CEO David Novak said that initial results “have been encouraging,” and it’s expanding the menu to another 200 locations this year and even more in 2013. It’s currently available in 750 locations in 10 states.

Yes, it’s encouraging so far, but this is just the beginning. Taco Bell has a long way to go to attain its former glory as Chipotle takes the nation by storm.

There are bound to be a lot of customers that came in just to try the new offerings because of all the marketing buzz, and Taco Bell needs to get them to come back for more.

NOW SEE: How Taco Bell Created The Infamous Doritos Tacos >

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