Market Overview

The Breakfast War Is Heating Up With Taco Bell's New Salsa

Share:
The Breakfast War Is Heating Up With Taco Bell's New Salsa

Attention breakfast lovers, Yum! Brands, Inc. (NYSE: YUM)'s Taco Bell unit has a new concept to win over the competitive landscape: breakfast salsa.

Taco Bell is been "killing it" in the breakfast space, as evidenced by an 8-percent same-store sales gain last quarter, CNBC's Jane Wells reported. In fact, some data points suggest breakfast is the only meal of the day that is showing growth — a much-needed trend at a time when demand for lunch is cooling down.

Taking advantage of its ongoing momentum, Taco Bell introduced its new packaged breakfast salsa. It was unclear at first how it's different from regular salsa. Eat This, Not That! uncovered the secret: the breakfast salsa is a bit less spicy than regular salsa, but just as tasty.

CNBC's Live Taste Test

Wells went on to sample one of the other salsa offerings from competing restaurant chains on live TV.

First up was McDonald's Corporation (NYSE: MCD)'s packaged salsa. Wells was no fan, noting it is "way too salty." Up next is Jack in the Box Inc. (NASDAQ: JACK)'s breakfast salsa, which is more like a tomato puree and not a good complement to its tacos. It's "really kind of gross — but so good" at the same time, Wells said.

And Wells' favorite salsa pick? Clearly Taco Bell.

Does This Even Matter?

Moving on to business, Wells noted that Taco Bell's biggest competitive threat isn't its peer fast food chains, but rather independent "mom and pop" restaurants that are seeing a resurgence. These chains are expected to see a better growth profile over at least the next three years.

Related Links:

Is McDonald's A 'Communist Dictatorship?' A New Taco Bell Commercial May Depict It As One

Taco Bell Thinks Outside The Bun, Focuses On Growing Outside The U.S.

Image: Mike Mozart, Flickr

 

Related Articles (YUM)

View Comments and Join the Discussion!

Posted-In: breakfast CNBC restaurants Salsa Taco BellRestaurants Media General Best of Benzinga