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Yum! Brands' Taco Bell to Move its First Unit, Numero Uno

Yum! Brands, Inc. 's YUM Taco Bell recently announced its plans to relocate the first Taco Bell restaurant known as Numero Uno from Downey, CA to Taco Bell headquarters in Irvine, CA, thereby saving it from demolition. This 400 square foot building will be loaded onto a truck and transported 45 miles to Taco Bell headquarters in Irvine.

The company will keep the building at Taco Bell headquarters for storage till further course of action is determined and intends to decide its future with the consent of the fans and community involved.

The History

Numero Uno was opened in 1962 by Glen Bell as a walk-up taco stand accompanied with live music and fire pits. Taco Bell offered Mexican-inspired food to the masses and revolutionized the quick service restaurant (QSR) industry. However, it closed in 1986 amid stiff competition from larger restaurants that had indoor seating and drive-thrus, which this original location lacked. Following this, it operated as other taqueria restaurants until it was permanently vacated in Dec 2014. With a large vacant plot and plans for new development in the works, the restaurant was likely to be demolished. However, the company has come forward to raise and rehabilitate the 53-year-old foundation.

After knowing about the proposed demolition earlier this year, Taco Bell raised awareness through social media, thereby encouraging fans to tweet #SaveTacoBell to help spread the word.

A Glimpse of Today's Taco Bell

Taco Bell serves made-to-order and customizable tacos, burritos, and specialties such as the exclusive Doritos Locos Tacos, gourmet-inspired Cantina Power Menu, and lower calorie Fresco options. It has more than 350 franchise organizations operating more than 6,000 restaurants across the U.S. It is the first QSR restaurant to offer American Vegetarian Association-certified menu items.

The company seeks to drive the brand through various sales initiatives. It rolled out the breakfast menu on a national level at Taco Bell in Mar 2014, which has been witnessing considerable success. To cater to cost-conscious customers, Taco Bell rolled out the dollar menu in mid-August, last year. Management has also launched a mobile app at Taco Bell that facilitates food customization, ordering and payment. Apart from this, the company launched a virtual flagship restaurant and website, which can be accessed through mobile devices as well as PCs. Known as ta.co, the site allows users to try out certain menu combinations, customize their food, as well as order and pay in advance. Taco Bell is making extensive use of technology to connect to millenials who constitute a large part of its customer base. This would continue to help drive comps in the coming quarters.

Also, the brand recently announced that all its company owned and franchised restaurants in the U.S. will serve cage-free eggs by Dec 2016. The move comes in the wake of its promise to deliver quality food at great value. (Read: Yum! Brands' Taco Bell to Serve Cage-Free Eggs by 2016 )

Yum! Brands has a Zacks Rank #4 (Sell).

Stocks to Consider

Some better-ranked stocks in the same industry are BJ's Restaurants, Inc. BJRI , Carrols Restaurant Group, Inc. TAST and Bojangles', Inc. BOJA . All three 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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