With continued positive sales and record profit, Taco Bell enjoyed 2024 more than most of its peers. But the chain isn’t settling.
On Tuesday, Taco Bell announced R.I.N.G. The Bell (Relentlessly Innovative Next-Generation Growth), a new business growth plan that aims to grow AUV from $2.2 to $3 million, restaurant-level margins from over 24 percent to between 25 and 26 percent, and profit from $1 billion to $2 billion, in addition to elevating market share and brand love. It’s a continuation of what Taco Bell has already accomplished. Between 2019 and 2024, The U.S. segment grew market share by 60 basis points, AUV from $1.6 million to $2.2 million, and brand love by 12 percentage points.
The chain also foresees more than 10,000 restaurants in the U.S.—up from the 7,604 it ended with last year—fueled by nontraditional asset types. The domestic segment has opened more than 2,300 units in the past 10 years.
“People love our brand because we do things differently,” Taco Bell CEO Sean Tresvant said in a statement. “But we also mean business; we have a strong strategy that keeps our consumers and restaurant teams top of mind. The bold swings will only get bigger as we continue to chase greatness. We had an impressive year thanks to fans and team members, so we’re grounding our 2025 strategy around them.”
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Taco Bell believes it can reach its AUV goal through four initiatives—a bolder menu calendar, new dining occasions, accelerated digital sales, and an enhanced guest experience.
In 2025, the chain will release twice as much menu innovation as it did in 2024 and also grow its value mix from 13 percent to 18 percent. Taco Bell estimates this will bring two points of incremental same-store sales growth in 2025.
As for new occasions—a strategy to give customers more reasons to visit Taco Bell more often—last year the brand added fries as a limited-time offer (which will become a permanent menu item) and the Cantina Chicken platform. By 2030, the chain wants to add eight new occasions, including Crispy Chicken, desserts, breakfast innovation, carne asada, and more beverage options (chillers, refrescas, energy drinks, and coffee). Taco Bell estimates this will add $250,000 in incremental AUV over the next five years.
The company said the Cantina Chicken platform and beverages can individually reach $5 billion in system sales by 2030, fueled by efforts like the drink-focused Live Más Café concept that opened in Chula Vista, California, last year.
Taco Bell also wants 100 percent of transactions to be enabled by digital platforms and streamline every touchpoint through innovations like Byte by Yum!, the company’s new tech suite filled with several AI-driven tools. Taco Bell U.S. uses Byte by Yum!’s integrated online ordering, point of sale, and back-of-house technologies.
The brand said digital sales could add $225,000 in incremental AUV by 2030.
Digital mixed 5 percent in 2019 and expanded to 35 percent in 2024, or $6 billion in sales. And more importantly, 60 percent of digital sales last year were first-party. The chain wants to surpass 60 percent digital mix by 2030.
This sales channel is one of the brand’s biggest opportunities. Taco Bell found that stores in the top 10 percent of digital sales saw 7 more points of system sales growth in 2024 year-over-year compared to the bottom 10 percent of stores. This is because digital guests spend $3.50 more on average than traditional guests.
The loyalty program will play an integral role as well; consumers who join go from 5.8 visits per year to 10.2, or a 76 percent increase. In 2024, monthly active users grew by 83 percent, loyalty transactions lifted 35 percent, and loyalty average check increased 4 percent.
Additionally, Taco Bell said it can add $130,000 in incremental AUV by elevating its experience, whether that’s drive-thru speed, AI and loyalty integration at the drive-thru, or a more efficient back of house.
The rise in AUV in turn fuels margin expansion. Taco Bell expects average U.S. company store profitability to rise from $550,000 in 2024 to $800,000 in 2030.
“Taco Bell U.S. is one of our twin growth engines,” Yum! Brands CEO David Gibbs said in a statement. “As we grow the world’s most iconic restaurant brands globally, we’re confident in Taco Bell’s magic formula and its ability to remain a category of one and outperform the industry.”
Taco Bell also hopes to expand its international footprint to more than 3,000 units over the next five years. The brand plans to enter nine new countries including France, Greece, and South Africa, and accelerate growth in existing U.K., Spain, Australia, and India markets. Taco Bell finished 2024 with 1,153 international outlets. For perspective, the international segment had 403 stores in 2017; a net of 100 units is expected in 2025.
Despite tightening wallets and an increasingly promotional environment, Taco Bell last year grew U.S. same-store sales in all four quarters. The chain also reached $1 billion in profit for the first time, with over 24 percent restaurant-level margins in corporate locations. The chain contributed to 80 percent of Yum! Brand’s U.S. profit.
In Q4, U.S. same-store sales lifted 5 percent, outpacing the industry by six percentage points. The chain gained dollar share of total industry spend and increased guest frequency across all income segments through its Decades platform—which brought back five nostalgic, in-demand menu items—and the price-pointed $7 Luxe Box.
The momentum has continued into 2025. Domestic comps are expected to rise 8 percent in Q1 thanks to new menu innovation boosting traffic.
Taco Bell believes its opportunity is still massive. The chain estimates that it has 145 million customers, but also another 116 million that haven’t visited in 12 months or haven’t visited at all.
