Can Yum! Brands, Inc. (YUM) Really Double U.S. Taco Bell Sales by 2021?

Yum! has also followed McDonald’s Corporation (NYSE:MCD) lead by both working to improve restaurant ergonomics and offering healthier, higher-quality menu items such as the Cantina Bell line. This serves to not only increase average unit volumes, but also improves customer perception of fast-food outfits like Mickey D’s and Yum!’s brands. In turn, they’re able to more effectively compete with up-and-coming fast-casual concepts like Chipotle Mexican Grill, Inc. (NYSE:CMG) and Panera Bread Co (NASDAQ:PNRA).

Finally, Yum! is planning to increase its total number of U.S. Taco Bell locations by around 2,300 units to 8,000. Around half of the new units are to be built in smaller towns, between 700 and 800 will go to more traditional suburban markets, and 200 to 300 new locations will be built in urban settings.

Once again, those new unit numbers might sound intimidating at first, but before you go rolling your eyes, remember that McDonald’s already boasts more than 14,000 locations in the U.S. alone, or 75% more than the total number of Taco Bells Yum! hopes to have eight years from now.

Foolish final thoughts
In the end, I’m convinced it’s not just possible, but more than likely probable that Yum! will manage to achieve $14 billion in U.S. Taco Bell sales by 2021.

When we consider that this doesn’t take into account the company’s other popular KFC and Pizza Hut chains or its massive potential for international growth, Yum! Brands, Inc. (NYSE:YUM) stock is beginning to look more delicious by the day.

The article Can Yum! Brands Really Double U.S. Taco Bell Sales by 2021? originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Chipotle Mexican Grill, McDonald’s, and Panera Bread. The Motley Fool owns shares of Chipotle Mexican Grill, McDonald’s, and Panera Bread.

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