KFC, Pizza Hut’s Q3 sales rise despite demonetisation
New Delhi: Yum! Brands Inc., the NYSE-listed fast food company that owns KFC, Pizza Hut and Taco Bell, on Thursday said sales at KFC outlets in India rose 16% in the October-December quarter.
Sales at Pizza Hut India stores alone grew 9% the quarter, the company said in a statement.
This is the second consecutive quarter Yum!Brands has reported same-store sales growth--a measure of sales at outlets that have been open for at least a year.
It indicates that the 8 November invalidation of high-value bank notes by the Indian government’s didn’t have much impact on the company.
“Over the last six months, we have driven growth by realigning our business structure and focusing on core offerings and relevant product innovations. In the wake of external factors like demonetisation that affected the industry in the past few months, this is a reiteration of the confidence that consumers have shown in our brand. Our focus for the coming year is to sustain 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 of 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 Rs 750 crore last year. The two franchisees together run about 800 outlets in the country.
Globally, Yum! Brands, Inc. reported a 2% rise in revenue to $2.02 billion in the quarter. Globally, sales at restaurants (all brands together) open for more than a year rose 1% in quarter ended 31 December.
Pizza Hut’s rival Domino’s Pizza, managed by Jubilant FoodWorks Ltd, reported a 3.3% decline in same-store sales during October-December as consumption was hit by currency demonetisation.
The promoters of HT Media Ltd, which publishes Mint, and Jubilant FoodWorks are closely related. There are, however, no promoter cross-holdings