New Delhi: Yum! Brands Inc., the fast food company that owns KFC, Pizza Hut and Taco Bell, on Thursday said its system sales in India grew by 9% for KFC and 8% for Pizza Hut in quarter ended 30 June 2017. This is the fourth quarter in a row the company has reported growth.
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 April-June 2017 quarter is our fourth consecutive quarter of positive system sales growth, and we are happy to share that we have posted a 9% system sales growth. We shall continue to focus on our core products, innovation and value to sustain this positive momentum," 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 in 2016. The two franchisees together run about 800 outlets in the country.
Globally, Yum! Brands Inc. reported 1% decline in same store sales at Pizza Hut, leading to a 4% drop in net sales to $1.45 billion during the quarter under review from $1.51 billion in the corresponding quarter previous year.
Yum! Brands Inc. rival in India, Jubilant FoodWorks Ltd that operates Domino’s Pizza and Dunkin’ Donuts outlets in India had reported a 6.5% rise in same-store sales in April-June quarter – which was the highest for the company since April-June quarter of fiscal 2016, Mint reported on 17 July. Jubilant’s operating revenue grew 11.5% to Rs678.8 crore during the April June 2017 quarter.
Yum! Brands Inc. had, in January-March reported a 2% rise in system sales growth in India. In October-December 2016 quarter, it reported a 16% rise in system sales growth at KFC outlets and 9% at Pizza Hut stores in India.