June 1, 2015
What Does the Party at Taco Bell Mean for Investors?
The Onion might be satire, but there’s some truth to their recent story about Taco Bell. The much loved — or hated, depending on how you feel — chain restaurant may be serving alcohol soon. A branch of Taco Bell has applied for a liquor license in the Wicker Park area of Chicago. We’re not sure about the wisdom of going to a Taco Bell that also serves liquor. After all, if you’re headed there late at night, you’ve probably already made a couple of bad choices, and you might want to just go home. Combining an XXL Grilled STUFT Burrito with a Mtn Dew® Baja BlastTM Freeze is already a little dangerous. Do you really need to add booze to that?
Your personal choices aside, we suspect this move is a further attempt by Taco Bell (NYSE: YUM) to compete with Chipotle (NYSE: CMG). The newer brand, Chipotle, has been taking a larger and larger share of the market since their 2006 IPO. Will adding alcohol to the menu increase Taco Bell’s market share? And if it does, will it be enough to beat Chipotle?
[would love to add one of the guy’s opinions here. not an answer, just a “this could happen” or this could happen” or “you might want to invest because of this” or “you might not want to invest.” or” Chipotle might be worth more, but Taco Bell could be a steady earner” “Almost any stock can be part of a diverse investment strategy.” I don’t know, but I bet someone at GP does!) ]
In the end, we can’t tell you what to do, but we’re always here to discuss financial planning, right down to the last detail. Taco Bell is changing, doing something new to remain relevant in a changing market. When you need to make adjustments in your plan as your life changes, we’ll be there for you, with common sense advice and recommendations based on our experience and knowledge. What we won’t do is add liquor to your menu, unless, of course, there’s a publicly traded liquor company with a great future. Then we’ll talk. Call us or make an appointment to see a Gainplanner in person any time you want to talk strategy. Just bring us a burrito if you’re having one, okay? But we might have to pass on the drink to go with it.