Taco Bell has 6,000 locations and plans on adding another 2,000 by the year 2022. Yum! Brands also expects sales at Taco Bell to double by 2022 to $14 billion.
These taco-themed fast-casual restaurants are a great expansion by Yum! Brands. The company can continue to support and expand its fast food brands while also venturing into fast casual, where the high growth is for now. Yum! is also expanding its KFC brand into new fast casual brands Super Chix and KFCeleven.
Shares of Yum! Brands are trading near their 52-week high of $77.67. In 2014, shares are now up just over 3%. Chipotle stock, on the other hand, is sitting idle. Shares have declined 4% in 2014.
Yum! Brands is positioned well to rebound in China and the U.S. The new breakfast menu in the U.S. and the new fast-casual chains could be enough to get investors excited and warrant a higher stock premium.At the time of publication, the author held no positions in any of the stocks mentioned. Follow @chriskatje This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
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