Breakfast used to be a tricky thing for Taco Bell — remember the Waffle Taco? How about the Naked Egg Taco? It had gotten pretty sticky, largely due to self-confessed “over-innovation,” that they hired tabloid favorite former SNL star (and the apple of Kanye West’s eye) Pete Davidson to do the apologizing for them.
And it worked. Following the ad campaign with Davidson, sales of the fast food chain’s breakfast burritos and egg-stuffed quesadillas went up 9% in the last quarter of 2022, according to CNN.
“We honestly over-innovated in breakfast,” Sean Tresvant, Taco Bell’s chief brand officer, told CNN when they launched Davidson’s ads last year. “When you look at today’s consumer and the [fast-food] breakfast business, it’s about familiarity and it’s about comfort.”
Taco Bell helped its parent company Yum Brands (NYSE: YUM) beat fourth-quarter earnings expectations. Overall, the company reported earnings per share of $1.31 adjusted versus $1.26 expected, and revenue of $2.02 billion against the expected $1.92 billion.
These numbers were largely driven by Taco Bell’s same-store sales growth of 11%, versus analyst estimates of 6.7%.
But it wasn’t all Pete! The company also had success with its limited-time-only Mexican Pizzas, which executives say sold 45 million units last year, considering that it was only available for four months.
“We’re connecting and we’re winning because of value,” Yum CEO David Gibbs said at the earnings call.
Information for this story was found via CNN, CNBC, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
