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Yum! Brands Launches Taco Bell Cantina, to Serve Alcohol

Yum! Brands, Inc. 's YUM Taco bell is reportedly introducing a new restaurant concept - Taco Bell Cantina - in a bid to attract millennials. The energy-efficient restaurants will have new designs and serve alcohol.

The first Taco Bell Cantina will reportedly be unveiled in the upscale Wicker Park section of Chicago on Sep 22. It will serve beer, wine, sangria and Twisted Freezes, a margarita-like frozen alcoholic beverage spiked with rum, tequila or vodka. The plans for the Chicago outlet were announced earlier in May. (Read: Yum! to Serve Alcohol at Chicago Taco Bell; License Pending )

The second unit, likely to be opened later this month in AT&T Park in San Francisco, will offer wine and beer. Taco Bell will be joining other upscale chains in the fast casual Tex-Mex space, like Chipotle Mexican Grill, Inc. CMG , Rusty Taco, Rubio's and Baja Fresh that already offer alcohol.

The restaurants, not a drive-through unlike others, will keep the ambience of the area where it is located. For example, the brick walls of the century-old building where the Wicker Park restaurant is located were restored. The eco-friendly restaurants will use recycled material. In addition to the usual Taco Bell menu items, the Cantina restaurants will offer a wide variety of appetizers during specific hours each evening. Additional digital services, like mobile ordering, will also be offered.

Yum! Brands' international sales have suffered a huge setback due to food quality scandals, and it is struggling to post comps growth in the U.S. as well. So a new restaurant concept would be a step in the right direction. Further, with the eco-friendly designs and inclusion of alcohol in the menu, Taco Bell will be able to connect with the young generation, who are gradually moving away from fast food concepts.

Yum! Brands has a Zacks Rank #3 (Hold). A couple of well-ranked stocks in the same sector are Carrols Restaurant Group, Inc. TAST and Bob Evans Farms, Inc. BOBE . Both these stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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