• by Todd Wasserman , May 4, 2023

Taco Bell’s digital business grew by $1 billion for its first quarter, compared with the comparable quarter in 2022. The Yum brands unit experienced an 8-point improvement in its digital mix after launching delivery as a service through its mobile app.

“Our long-term aspiration is to get to 100% of transactions that are digitally enabled. I’m not sure how long it will take to get there, and it will take a lot of hard work, but in the long run, I think that’s where we should be,” Yum Brands CFO Turner said in an interview with Nation’s Restaurant News following the company’s earnings call this week.

Overall, Yum Brands’ first-quarter earnings fell short of analysts’ estimates, but the brand’s same-store sales increase of 8% bested most analysts’ estimates.

CEO David Gibbs attributed the rise to value offerings and promotions, which won over consumers. “A strong set of commercial strategies that balance compelling value and crave-able distinctive products fueled our first-quarter sales momentum,” said Gibbs.

Gibbs specifically cited the Crispy Melt Taco and the Grilled Cheese Burrito, and acknowledged that $2 burritos and the Cravings Value Menu helped boost results. Gibbs said that digital sales are up about 60% year-over-year.

Analysts attributed those gains partially to Taco Bell’s launch of delivery as a service via its mobile app. There were other innovations as well, including Taco Lover’s Pass, a deal in which customers got a taco a day for 30 days for $10.