Taco Bell is thriving with Gen Z. Its CEO says that's no accident.

• Taco Bell's CEO, Sean Tresvant, says the brand's relevance with Gen Z is an intentional strategy.
• The Mexican chain leans hard into youthful cultural references with menu innovation and merch drops.
• It's paying off — as other fast food chains struggle, Taco Bell keeps posting positive comps.

Taco Bell's growth story isn't just about value — it's about relevance.

As much of the fast-food industry grapples with cautious consumers and slowing traffic, Taco Bell has managed to stand out with younger diners. The Mexican chain's parent company, Yum! Brands, reported earlier this month that Taco Bell delivered 7% same-store sales growth in the fourth quarter, fueled in part by transaction gains that skewed especially strong among younger customers.

CEO Sean Tresvant says that the 63-year-old brand's youthful appeal is deliberate.

"We are a brand within culture — we understand where culture is, not only where it is, but where it's moving to," Tresvant told Business Insider. "That way, we stay really, really relevant with Gen Z, not only today, but where they're moving to tomorrow."

That cultural fluency shows up in everything from limited-time menu drops to brand collaborations. Taco Bell recently revived fan-favorite items like the Quesarito, launched new sauce collaborations and a viral Baja Blast pie, and has leaned into buzzy partnerships, including a Y2K-themed collaboration with Hollister that sold out late last year.

Of Yum! Brands' four subsidiaries — including KFC, Pizza Hut, and Habit Burger — Taco Bell is the primary driver of growth. The location intelligence firm Placer.ai reports that Taco Bell delivered the largest and most consistent year-over-year monthly overall visit and same-store visit growth throughout Q4 2025.

Taco Bell also consistently scores well on the InMarket Fidelity Index, which measures the ratio of visits to a chain relative to its number of locations, highlighting a brand's efficiency and consumer loyalty over time. In the fourth quarter, Taco Bell ranked fifth among all quick-service restaurants, outperforming other chains among consumers earning less than $150,000, signalling broad popularity among fans regardless of income level.

Tresvant argues the brand's resonance with Gen Z in particular isn't just about marketing — it's about execution across the business.

"When you look at being a buzzy brand, you look at value, you look at digital, you look at category entry points and innovation, and all those things are working in concert with each other," Tresvant said. "Other brands can do one or two. When we do it, we get all four right, and we're very good in each part of that magic formula."

Winning Gen Z means playing by different rules

Digital engagement, in particular, has become a major driver. Tresvant said active loyalty members climbed 31% in 2025, while digital channels saw double-digit growth, as app-exclusive drops and rewards encouraged repeat visits.

The goal of Taco Bell's digital strategy, Tresvant said, isn't just engagement for the sake of engagement.

"We need to continue to make sure we're driving loyalty," Tresvant said.

Data from PAR Punchh, a restaurant loyalty program software from the foodservice tech company PAR Technology, shows Gen Z surpassed millennials for the first time in 2024 as the most active generation in restaurant loyalty programs. They represent 38% of active loyalty members, about 35% of check-ins, and 49% of new sign-ups.

Savneet Singh, CEO of PAR Technology, told Business Insider that Gen Z isn't just participating in loyalty programs — they're "redefining" it, with demand for instant gratification and high-quality rewards for their engagement.

"No hoops, no waiting until the next visit," Singh said. "They expect real-time updates to their loyalty accounts, instant incentives for digital actions, and perceived exclusivity like app-only items or secret menus."

In that way, Singh said, Taco Bell is a "loyalty powerhouse" among Gen Z, due to its app-only offers, secret menu items, pop culture collaborations, and gamified experiences that keep younger consumers engaged.

At a time when many fast-food chains are leaning heavily on discounts to lure back cost-conscious customers, Taco Bell has also emphasized its structured value — including $5, $7, and $9 bundle offerings — alongside steady menu innovation, another winning strategy for younger consumers.

"Our data shows that millennials are the most offer-reliant generation, redeeming more frequently and responding more to discount-driven messaging," Singh said. "For Gen Z, value extends beyond price to include ease, timing, and relevance. They want 15% off today, not a free item next week."

For Tresvant, the combination of Taco Bell's value, digital engagement, and cultural relevance has created a flywheel effect with younger diners — one that he believes can hold up even in a volatile economy.

"We're a resilient brand," Tresvant said. "This is a brand that can perform and be successful in any environment."