Taco Bell Sales Continue Climbing in 2025 Despite Consumer Cutbacks

While many quick-service restaurants face declining traffic from lower-income customers, Taco Bell sales in 2025 show no signs of slowing down. In fact, the brand is outperforming the industry with 4% same-store sales growth in Q2, according to Yum! Brands CEO David Gibbs.

“We aren’t seeing a pullback at Taco Bell,” Gibbs said during the Q2 earnings call. “In fact, we’re gaining share—even from fast casual.”

Taco Bell has not reported a single negative sales week this fiscal year, making it the only major public restaurant chain to maintain five consecutive years of positive quarterly comps.

Innovation and Value Fueling Taco Bell’s Growth

Much of Taco Bell’s recent success is tied to product innovation and value-driven menu strategies. Highlights include:

  • Crispy Chicken platform launches like Crispy Nuggets, Tacos, and Burritos.

  • Over 50% growth in total chicken sales in the last two years.

  • Upcoming releases: $3 burritos, Cheesy Street Chalupas, and Baja Blast Midnight (exclusive Mt. Dew flavor).

  • Reintroduction of the Decades menu.

Taco Bell Bets Big on Beverages

Taco Bell is targeting $5 billion in beverage sales by 2030, with recent milestones including:

  • National rollout of Refrescas drinks.

  • Expansion of Live Más Cafe to 30 locations in California and Texas.

“No brand is better positioned in beverages than Taco Bell,” said Gibbs. “Baja Blast is already a powerhouse—we’re just getting started.”

Digital and Off-Premises Strategy Drives Loyalty

41% of Taco Bell U.S. orders are now digital, driven by:

  • Engaging loyalty activations (e.g., Mike’s Hot Honey Tuesdays).

  • A 45% YoY increase in active loyalty users.

This is supported by Byte by Yum!, the company’s AI-driven technology stack used in areas like:

  • Online ordering and point of sale.

  • Kitchen and delivery optimization.

  • Automated voice ordering (now in 600 U.S. locations).

“Voice AI is reducing turnover and improving efficiency,” said CFO Chris Turner. “We’re still in the early stages of scaling Byte globally.”

Sibling Brands Struggle Amid Consumer Softness

While Taco Bell thrives, other Yum! Brands are feeling the pinch:

  • KFC U.S.: Down 5% in Q2, citing weak value perception and product innovation gaps.

  • Pizza Hut U.S.: Down 5%, struggling with message clarity despite strong product reception.

  • Habit Burger: Down 4%, now focusing on loyalty offers and value bundles like the Gotta Have It meals.

Taco Bell’s consistent performance during economic turbulence highlights the strength of its brand model, innovative menu, and digital transformation strategy.