Yum! Brands posts growth for the fifth quarter in a row
New Delhi: Yum! Brands Inc., owner of fast food chains KFC, Pizza Hut and Taco Bell, on Thursday said system sales in India rose 8% for KFC and 7% for Pizza Hut in the quarter ended 30 September, posting growth for the fifth quarter in a row.
Yum measures growth through system sales, a metric similar to same-store growth, which is determined by sales at outlets that have been open for at least a year.
“The last two years have been a very transformational time for us at KFC India—we had taken some deliberate decisions to reorganize our businesses, associate with like-minded partners and focus on our core product offerings, and it is great to see these efforts translate into positive momentum for the business,” Rahul Shinde, managing director, KFC India, said in a statement.
“This consistent growth is testimony to the energy and focus that our teams and partners bring to the table every day,” he said.
Yum! Brands has two franchisees in India—the Ravi Jaipuria-owned Devyani International and Sapphire Foods India. Sapphire Foods was formed by a consortium of funds led by Samara Capital, which bought part of Yum! Brands’ franchise business in India for Rs750 crore in 2016. The two franchisees together run about 800 outlets in the country.
Globally, Yum! Brands Inc. reported 6% growth in same store sales during the quarter, with KFC at 7%, Taco Bell at 6% and Pizza Hut at 3%. The company has opened 362 new outlets during the quarter.
Yum! Brands’s rival in India, Jubilant FoodWorks Ltd, which operates Domino’s Pizza and Dunkin’ Donuts outlets in the country, reported 5.5% growth in same-store sales at Domino’s Pizza, which helped the company more than double its net profit for the three months ended 30 September.