Taco Bell customers pretty much need to check the chain's menu each day in order to see what's new. The chain adds and removes multiple items each month, sometimes without much fanfare.
In October, the fast-food leader already added vegan Nacho Fries, which should delight fans of the chain who avoid animal products. That's actually an area where the Yum! Brands (YUM) -) subsidiary has actually been a leader.
Related: Taco Bell's newest menu item is a first for the chain
While it's hard to find a vegan menu item at McDonald's (MCD) -) — especially since the chain dropped selling salads in 2020 — Taco Bell has embraced the vegan community. The chain overs vegan versions of a number of its menu items and shares how to modify many of its most popular offerings in order to meet people's dietary needs
Taco Bell, of course, also sell a lot of meat and many of its most successful menu choices are very far from vegan. The chain's latest offering, which was quietly added to menus nationwide in mid-October doubles down on meat.
It's a comfort food classic with a decidedly Taco Bell twist.
Image source: Taco Bell
Taco Bell menu adds a new burrito
Taco Bell has never hesitated to veer beyond the traditional Mexican menu. It has used ingredients that rarely appear in what most people consider classic Mexican cooking in what some might call a "fusion" style.
Bacon fits that bill. You rarely see the salty pork delicacy in Mexican restaurants, but it works well when Taco Bell decides to use it. That's why the chain's new Steak and Bacon Grilled Cheese Burrito might seem like a bold play, but it's also familiar in a way that makes it seem like something Taco Bell has sold for years (even though it was only introduced in tests earlier this year).
"Taco Bell’s Steak and Bacon Grilled Cheese Burrito features marinated, grilled steak, potatoes, chipotle sauce, nacho cheese sauce, reduced-fat sour cream, and three-cheese blend, all wrapped up inside a warm flour tortilla, with more three-cheese blend and bacon grilled on top," Fast Food Post reported.
The new burrito costs $5.99 and comes in at a fairly whopping 700 calories. The chain is also selling a Steak and Bacon Grilled Cheese Burrito combo box for $8.99 that also includes a large fountain drink and a crunchy taco.
Taco Bell grows its margins
In a time where consumers have been cautious with their spending, Taco Bell has been able to grow its margins. The chain delivered a 25% operating margin in the most recent quarter.
"Taco Bell's ability to deliver such strong margin performance despite mid-single-digit inflation once again demonstrates the power and resilience of their business model and preserves their compelling unit economics, which remain near an all-time high," CFO Chris Turner said during the chain's second-quarter earnings call.
The chain has built its sales around menu innovation and clever promotions.
"This quarter, the team launched a campaign to liberate Taco Tuesday in a first-ever global Taco Tuesday campaign spanning 19 markets in partnership with a true global icon, LeBron James," CEO David Gibbs shared during the call.
That promotion created controversy out of the chain co-opting an idea that was not a Taco Bell creation. It sort of skirted the line between clever, and a big brand over-stepping its bounds. That was not the chain's only successful promotion during the quarter.
"Other promotions in the quarter contributing to Taco Bell's winning magic growth formula include both our $5 Cravings Trio and Deluxe Build Your Own Cravings box," Gibbs shared.
