KFC and Pizza Hut owner Yum! Brands posts growth for sixth consecutive quarter in a row
Yum! Brands’ system sales in India rise 18% for both KFC and Pizza Hut in the December quarter
New Delhi: Yum! Brands Inc., owner of fast food chains KFC, Pizza Hut and Taco Bell, on Thursday said system sales in India rose 18% for both KFC and Pizza Hut in the quarter ended 31 December, posting growth for the sixth 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.
“System sales growth for the year ended December 2017 is 9% (for KFC). This continued positive momentum gives us confidence in our focused efforts on innovating on our core, driving value offerings and continued operational excellence. Our franchise partners continue to be strong allies and remain invested in our growth strategy. We are optimistic about 2018,” Samir Menon, managing director, KFC India, said in a statement.
“We will continue to build on what’s working and channelize our energies on strengthening the momentum by leveraging our distinctive brand proposition and unlocking business growth through delivery and unit growth,” 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 16% decline in total revenues for the quarter ended 31 December at $1.57 billion as compared with $1.88 billion in the corresponding year-ago quarter. For the full year, Its global revenue dropped 8% to $5.87 billion in 2017, as compared with $6.35 billion the previous year, the company reported on Thursday.
Globally growth in same store sales during the December quarter, with KFC stood at 4%, Taco Bell at 6% and Pizza Hut at 3%. The company has opened 730 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 17.8% growth in same-store sales at Domino’s Pizza, which helped the company more than treble its net profit for the three months ended 31 December.
The promoters of HT Media Ltd, which publishesMint, and Jubilant FoodWorks are closely related. There are, however, no promoter cross-holdings.
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