June 1, 2015
What Does the Party at Taco Bell Mean for Investors?
Taco Bell + Alcohol? The Fast-Food Arms Race Heats Up
It may have started as satire in The Onion, but Taco Bell is actually making moves to serve alcohol. A location in Chicago’s Wicker Park has officially applied for a liquor license. Whether that’s genius or risky depends on your perspective. After all, if you’re heading to Taco Bell late at night, chances are the evening has already included a few questionable decisions—and the addition of alcohol might not improve that track record. Mixing a Mtn Dew® Baja Blast™ Freeze with a shot of tequila? That’s bold… maybe too bold.
Competing with Chipotle: Can Booze Tip the Scale?
This move seems to be another attempt by Taco Bell’s parent company, Yum! Brands (NYSE: YUM), to compete with fast-casual leader Chipotle (NYSE: CMG). Since Chipotle’s IPO in 2006, it’s been steadily stealing market share with its “fresh and fast” approach. Taco Bell adding alcohol could be an effort to modernize the brand and attract a younger, experience-driven customer. But will it work? Maybe. It might attract late-night diners or urban customers looking for something trendier. Or it could fall flat as a novelty that doesn’t shift the bottom line.
As one of our team members said recently, “Chipotle might offer more growth potential, but Taco Bell could remain a reliable earner. Almost any stock can play a role in a diversified investment strategy—it just depends on your goals.”
Investing in a Changing Market
We can’t tell you what to order at Taco Bell—or whether to mix it with a beer—but we can help you make smart decisions about your financial future. Taco Bell is adjusting to stay relevant, and your financial plan should be just as flexible. Whether you’re investing in fast food stocks or planning for retirement, we’ll help you navigate your options with clarity and confidence.
Ready to talk strategy? Give us a call or stop by. And hey, if you’re picking up a burrito on the way, we wouldn’t say no. Just maybe leave the spiked Baja Blast at home.
This website commentary reflects the personal opinions and analyses of Gainplan LLC employees. It does not describe Gainplan LLC’s advisory services or client investment performance. Views in the commentary may change anytime without notice. Nothing here constitutes investment advice, performance data, or recommendations for specific securities, transactions, or strategies. Mentioning a security or its performance is not a buy or sell recommendation. Gainplan LLC uses various investment strategies, not all discussed here. Investing in securities carries risks, including loss. Past performance does not guarantee future results.
Gainplan LLC provides links to third-party websites for convenience. Clicking these links leaves our website. Gainplan LLC is not responsible for errors, omissions, or content on third-party sites and does not necessarily endorse their information. Users accessing these sites must follow their terms and assume all risks.