Taco Bell arises as the day’s tariff hedge
Mexican food that no one in their right mind thinks comes from Mexico is one of the most tariff-immune investments of the day.
Yum! Brands, the owner of Taco Bell, reached a record high on Tuesday amid a widespread market meltdown over 25% tariffs imposed on Mexico and Canada. It’s almost as if Taco Bell, the maker of the Crunchwrap and Doritos Locos Tacos, has almost no economic ties to the country that inspires its eccentric cuisine.
The move came after the company reported that it expects same-store sales for Taco Bell — which has recently outperformed its fast-food peers — to increase by 8% in 2025. The stock went up by more than 2%, reaching a record high of about $161. (The word “tariff” has not come up in Yum! Brands’ earnings calls since December 2010, according to FactSet.)
Other inauthentic Mexican food chains were not so lucky. Chipotle, which uses more avocados than Taco Bell does, fell by more than 2%. Chipotle CEO Scott Boatwright said on Sunday that the burrito chain would eat the increased costs of tariffs rather than pass it to consumers.
