Yum! Brands posts growth for seventh consecutive quarter in a row
Yum! Brands says system sales in India rose 19% for KFC and 21% for Pizza Hut in the March quarter
New Delhi: Yum! Brands Inc., owner of fast food chains KFC, Pizza Hut and Taco Bell, on Wednesday said system sales in India rose 19% for KFC and 21% for Pizza Hut in the quarter ended 31 March, posting growth for the seventh consecutive 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.
“This validates the journey we are on to build a big brand here. New restaurant openings, innovations around our core menu supported by attractive everyday value propositions, a clear focus behind digital & delivery and a great customer experience, are some of the reasons behind the brand’s sustained momentum,” Samir Menon, managing director, KFC India, said in a statement.
“We are optimistic about the future, as we continue to build a relevant, easy and distinctive KFC brand in India,” he added.
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 more than 800 outlets in the country.
Globally, Yum! Brands Inc. reported a 3% decline in total revenues for the quarter ended 31 March at $1.37 billion as compared with $1.42 billion in the corresponding year-ago quarter.
Globally, growth in same store sales during the December quarter, with KFC stood at 6%, Taco Bell at 4% and Pizza Hut at 2%. The company has opened 239 new outlets during the quarter.