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Taco Bell is once again bucking the trend by delivering “staggering” sales growth amid a broader slowdown in consumer spending, parent company Yum Brands reported Wednesday.
The Irvine-based fast-food giant posted a 9% increase in same-store sales in the first quarter—a key metric of restaurant performance.
That’s “an impressive achievement, especially against the backdrop of soft industry trends,” Yum Brands CEO David Gibbs told investors during the company’s quarterly earnings call.
By contrast, major chains such as Newport Beach-based Chipotle Mexican Grill, Starbucks and Taco Bell sister-brand Irvine-based Habit Burger & Grill reported negative same-store sales for the same period.
Gibbs attributed Taco Bell’s resilience to the chain’s ability to deliver “compelling value” in a challenging economic climate.
“I know this is a tough operating environment for everybody else in the industry. It just is probably an environment that favors Taco Bell, and that’s what you’re seeing,” he said. “They’re firing on all cylinders.”
Taco Bell has approximately 7,600 restaurants across the U.S.