Yum is Down to Three Brands, and Taco Bell Carries Most of the Weight

Yum Brands agreed in June to sell Pizza Hut. That leaves KFC, the Habit Burger & Grill and one chain that supplies 43% of the company's operating profit.

Taco Bell's same-store sales rose 7% in the second quarter against 3% growth across Yum, and system sales at the chain climbed 9% while Pizza Hut slipped 2%. Digital orders reached 47% of the mix. CEO Chris Turner said Taco Bell "entered Q3 in its strongest position ever" and told investors the company would move ahead as a "more focused organization positioned to accelerate growth."

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July undercut that with a cyclospora outbreak that sickened thousands of people and sent hundreds to the hospital, which early reports linked to lettuce supplied by Taylor Farms. Taco Bell absorbed more of the fallout than other chains. Same-store sales turned negative, down 2% for the quarter, though executives said the drop had "moderated materially."

But after that, the menu got busy. Tajín-seasoned tacos and a Cheesy Gordita Crunch arrived Aug. 13, promoted by Mexican singer Peso Pluma. A 2016-themed Decades menu followed Aug. 20, reviving the Naked Chicken Chalupa, the Beefy Crunch Burrito, the Meximelt and the Caramel Apple Empanada at $2.79 to $5.99. A Salt & Straw churro ice cream taco reached restaurants Sept. 1 for $3.99.

Nostalgia has paid before. The first Decades menu ran in October 2024 and coincided with 5% same-store sales growth, and a Y2K edition last September helped push growth to 7%.

Recently opened Taco Bell locations:

"Value is going to be a core part of how Taco Bell brings the magic formula to life," Turner told analysts, pointing to Decades and a butter chicken item as fourth-quarter drivers.

Drinks carry the longer bet. Taco Bell runs more than 30 Live Más Cafés inside its 7,700-plus U.S. restaurants and wants $5 billion in annual beverage sales by 2030. Energy drinks joined that lineup this summer at $3.99 to $4.49. Yum needs the recovery to hold, because the company no longer has a fourth brand to fall back on.