Return of Mexican pizza, as lowcost items boost profit

Operating under Yum Brands Inc. (NYSE: YUM) umbrella, Irvine’s Taco Bell is a brand known for menu innovation and modern strategies to stay relevant within its consumer base.

Like Del Taco, Taco Bell—OC’s largest restaurant chain by sales, with $13.3 billion reported for 2021 sales— has used its menu to offer competitively-priced deals, such as $2 burritos and the fan-favorite nacho fries, which run about $1.50.

The Cravings Value Menu features $1 and $2 price points, and represents 70% of Taco Bell’s U.S. profit, according to Yum Brands Chief Executive David Gibbs.

Building on the brand’s relevance, the recent return of the Mexican pizza to Taco Bell’s menu has the company capitalizing on the longawaited homecoming by creating pop culture moments for consumers to enjoy.

The company said “the Taco Bell test kitchen worked to streamline operations and ingredient sourcing” alongside customer requests to bring the fan favorite back this month amid industry shortages.

“Convenience and value win in any environment, particularly when you couple it with our great brands and innovative products that we’re constantly introducing,” Gibbs said.