The UK and European arm of Taco Bell returned to profit in 2023 ahead of one of its franchise partners entering administration.
The Surrey-headquartered division has reported a pre-tax profit of $2.2m (£1.6m) for 2023.
The total comes after Tac Bell reported a pre-tax loss of $1.8m (£1.3m) for 2022.
Newly-filed accounts with Companies House have also revealed that its turnover jumped from $20.5m (£15.6m) to $27.3m (£20.9m) over the 12 months.
In the UK, Taco Bell’s turnover increased from $12.2m (£9.3m) to $16.3m (£12.4m) and from $8.2m (£6.2m) to $11m (£8.4m) in Europe.
During the year Taco Bell’s franchise partners opened 38 stores, bringing the Toal to 365.
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A statement signed off by the board said: “The company continued to grow in 2023.
“In spite of improving market conditions, one franchise has fallen into administration during 2024.
“The debt outstanding from this franchisee at the year end remained paid and was recognised in these financial statements as bad debt.
“The directors have engaged in a rigorous review process and identified a new franchise partner to take responsibility for the stores that were previously run by this franchisee, with minimal disruption to trading in those stores.
“The directors are confident that the business will continue to grow and that market conditions are improving.
“There is a continued focus on build brand awareness and leveraging the strengths of the company’s franchise partners in the markets in which the company operates.”
The results come after Taco Bell’s owner, Yum! Brands, surged back into the black last year after a bumper year for its brands.
The group’s European division reported a pre-tax profit of $317.1m (£248.2m) for 2023 having posted a pre-tax loss of $300m (£234.8m) in the prior year.
The firm is a holding company for the wider group’s investments and does not generate a turnover.
Its profit was generated through the write back of its investment in Yum! Restaurants Europe and dividends from that firm and Pizza Hut Europe.
The wider Yum! Brands group is headquartered in the US and includes KFC, Pizza Hut, Taco Bell and The Habit Burger Grill. The brands are operated by a separate company in China.