Taco Bell's Ambitious Growth Strategy for 2025: Doubling Innovation and Expanding Internationally

After an impactful year of innovation in 2024, Taco Bell Corp has outlined its business strategy for the future, known as R.I.N.G. The Bell. The strategy focuses on Relentlessly Innovative Next-Generation Growth, aiming to drive double the innovation in 2025. This announcement comes on the heels of Taco Bell reaching a significant milestone, generating a $1 billion operating profit in 2024.

The company is sharing its strategy through an investor event, Consumer Day, partnered with its parent company, Yum! Brands. Taco Bell will provide updates on its financial achievements, restaurant experience evolution, digital investments, international expansion efforts, and menu approach.

Taco Bell's strong performance in 2024 came despite industry-wide challenges, with the company outperforming the QSR category. The company hit a $1 billion profit milestone for the first time, with over 24% restaurant-level margins in company-owned stores. Technological and operational investments resulted in a 32% growth in digital sales, totaling $6 billion.

Looking ahead to 2025, Taco Bell plans to continue growing its operating profit, guided by its strategic plan to R.I.N.G. The Bell. This strategy includes food innovation, unmatched value, supreme service and experiences, digital connections, tech advances, and international expansion.

By 2030, the company aims to accelerate U.S. growth by increasing annual average unit volumes from $2.2 million to $3 million and expanding its global footprint from 1,150 locations as of 2024 to over 3,000 restaurants outside the U.S.

Key components of Taco Bell's R.I.N.G. The Bell strategy includes broadening and elevating the brand by exploring more food categories for more occasions. The company aims for Cantina Chicken Menu items and beverages to reach $5 billion in system sales each by 2030. Additionally, it plans to offer more affordable options and reimagine customer service through a modernized restaurant experience.

On the tech front, Taco Bell aims to enable 100% of transactions through digital platforms and make Taco Bell Rewards the most loved loyalty program. The company plans to streamline each touchpoint through powerful innovations, including Byte by Yum!, a collection of AI-driven products.

In terms of international expansion, Taco Bell plans to increase its footprint to 3,000 restaurants outside of the U.S. by 2030, entering new countries like France, Greece, and South Africa and accelerating growth in existing markets like the U.K., Spain, Australia, and India.

Taco Bell's ambitious growth strategy is supported by its parent company, Yum! Brands. "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," said David Gibbs, CEO of Yum! Brands.