• January 11, 2012

Yum Brands' Taco Bell chain, whose primary customers are currently young adults looking for low-cost Mexican fare, is attempting to reposition by offering somewhat higher-priced menu items such as black beans, cilantro rice and corn salsa, reports Businessweek.com.

Those items are staples for Chipotle Mexican Grill, which has continued to grow and has seen its stock-market price triple since year-end 2009, while Taco Bell has seen its stores decline by 1,000 since 2000.

Taco Bell's management contends the chain can offer food "every bit as good as Chipotle," while charging several dollars less. Chipotle, however, stresses its reliance on naturally raised, sustainable, locally sourced ingredients. Taco Bell has said that it will announce more details about its menu and strategy.

Taco Bell generated about $400 million in operating profit in 2010, or about 60% of Yum's U.S. total -- but about 23% of global operating profits for Yum, which has been much more aggressive about expanding its KFC and Pizza Hut brands overseas, notes Businessweek.