New Delhi: Yum! Brands Inc., the fast food company that owns KFC, Pizza Hut and Taco Bell, on Wednesday said its system sales in India grew by 2% in quarter ended 31 March 2017. This is the third quarter in a row the company has reported growth.
“We are happy to report that this is the third consecutive quarter of positive system sales growth for KFC India. Despite external challenges, we have sustained positive momentum and posted system sales growth of 2%. Our focus remains on sustaining this growth and we are confident in our plans to drive this through continuous focus on innovation, value and our core products,” Rahul Shinde, managing director, KFC India, said in a statement.
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 last year. The two franchisees together run about 800 outlets in the country.
Globally, Yum! Brands, Inc. reported a 1.8% drop in total revenue to $1.42 billion as compared with $1.44 billion in the year-ago period.
In India, its system sales growth for KFC rose by 2% and Pizza Hut by 6% during the January-March quarter, according to the results statement of the parent. Yum! measures growth through system sales growth, a similar metric like same-store growth that is determined on sales at outlets that have been open for at least a year.
The company’s growth in sales, however, slowed in the January-March quarter as compared with the preceding (October-December) three months when demand was impacted due to the government’s decision to ban high-value bank notes. It had, in October-December 2016 quarter, reported 16% rise in system sales growth at KFC outlets and 9% at Pizza Hut stores in India.