Taco Bell says it has a ‘magic formula’ for bringing customers back. Here’s what it is

Yum! Brands, the parent company that owns Taco Bell alongside KFC and The Habit Burger Grill, announced strong third-quarter earnings on Tuesday, surpassing analyst projections. The growth at Taco Bell, a key driver for the company, was impacted by a cyclospora outbreak caused by contaminated shredded lettuce, which led to a 4% decrease in same-store sales in the United States for that quarter.

However, the company's CFO, Ranjith Roy, revealed optimism during the earnings call, stating that same-store sales have risen by approximately 1% in the fourth quarter and a 3% increase over the past four weeks compared to the same period last year. Yum! Brands credited the rapid recovery to a "magic formula" that encompassed weekly deals for loyalty members and limited-time offers.

In a statement, Yum Brands CEO Chris Turner emphasized that Taco Bell has been outperforming the quick-service restaurant industry in same-store sales growth since the end of September. Turner reaffirmed the company's confidence in delivering consistent earnings growth and generating long-term value for shareholders. Yum! Brands' shares experienced a slight decline of .2% at the time of reporting on Wednesday.

For the quarter ending September 30, 2026, Yum! Brands reported a 3.8% increase in revenue, totaling $2.05 billion, with earnings per share (EPS) at $1.56 adjusted, surpassing the Zacks Consensus Estimate of $1.47. The company's net income improved to $1.62 billion, up from $397 million at the same time last year. Yum! Brands' divestment from Pizza Hut, acquired by LongRange Capital and Yum China Holdings, Inc., was fully completed.