Dive Brief:
- Taco Bell is expanding its loyalty program to boost digital sales, Chris Turner, CEO of parent company Yum Brands, said on a Q1 2026 earnings call Wednesday.
- In the United States, Taco Bell is approaching a 50% digital mix and 30% year-over-year growth in loyalty sales, according to an earnings report. Same-store sales grew 10% year over year.
- “It's because the loyalty program is resonating with consumers, and it's helping people to engage with the brand more and more frequently,” Turner said.
Dive Insight:
Yum is focused on growing digital sales across its brands, which includes KFC and Pizza Hut, through its loyalty programs and Byte by Yum! technology platform, a system of AI-powered technologies to improve customer and employee experiences.
“Expanding loyalty is fundamental to growing our digital business and broadening consumer appeal,” Turner said.
In the first quarter, Yum grew its digital mix to a record 63%, and digital sales approached $11 billion, according to the earnings report.
As part of the loyalty expansion, KFC is planning to expand its loyalty program to 20 additional markets, which the company expects will triple its 90-day active user base, Yum CEO Chris Turner said.
Yum is also boosting its digital business through Byte. In the first quarter, Taco Bell U.K. became the first international market to roll out both the digital ordering and Smart Ops bundles. KFC will roll out Byte bundles in the U.K. and Australia later this year.
In the first quarter, Taco Bell U.S. piloted AI voice and AI dynamic menu boards in the drive-thru experience with A/B testing and plans to roll out the technology nationwide this year. Byte technology and the physical investments in digital menu boards have made the rollout of these features possible, Turner said.
“This new feature can dynamically change the layout content and visuals on a car-by-car basis, allowing the brand to generate insights more quickly and make more effective national adjustments,” Turner said. “Similar AI-driven enhancements will be tested and scaled across our brands to drive loyalty adoption and growth.”
In an email to CX Dive’s sister publication Restaurant Dive, Taco Bell confirmed the menu board testing will not impact or change store pricing.
Taco Bell has improved its consumer satisfaction scores in every period since March 2025, according to Turner. The restaurant chain “relentlessly” tracks order accuracy and by monitoring consumer complaints. Since rolling out operational improvements in 2025, consumer complaints have declined.
“I am confident that Taco Bell will continue to lead the industry, thanks not only to value and innovation, but also improved consumer experiences coming to life through superior execution, superior speed and superior digital and loyalty platforms,” Turner said.
