Yum! Brands' Taco Bell Trends Inflecting Toward 2027 Growth, UBS Says

02:42 PM EST, 11/04/2026 (MT Newswires) -- Yum! Brands' (YUM) Taco Bell is on a recovery path toward historical growth levels following July's food safety headlines, with execution of the "Raise the B.A.R." strategy and tech rollout supporting growth into 2027, UBS said in a note Wednesday. UBS said Taco Bell same-store sales have outpaced the QSR segment since the end of September, rising about 1% in Q4 to date and about 3% over the four weeks through Oct. 30. Heavy-user traffic has fully recovered, while medium and light users are visiting at 95% of pre-headline levels, it said. The brokerage expects the brand to return to mid-single-digit annual same-store sales growth in 2027, modeling 5.5%. It estimates 2% same-store sales growth in Q4, aided by menu innovation, value offerings and the rollout of Voice AI to more than 1,500 units by year-end. UBS also pointed to unit growth of 7% excluding Pizza Hut, above the company's 5% long-term algorithm, and said KFC's international momentum should support a stronger global comp trajectory. It models KFC same-store sales growth of 2.3% in 2027. UBS maintained its buy rating with a price target of $180 per share. Price: 166.54, Change: +9.53, Percent Change: +6.07