New Delhi: Fast food company Yum! Brands, Inc said system sales for its KFC and Pizza Hut brands in India grew 22% and 9% respectively for the second quarter ended June 30, 2019, the company said in its annual earnings release on Thursday.
This is the eleventh consecutive quarter of positive system sales growth for both brands in India. Yum! measures growth through system sales, that includes the results of all restaurants regardless of ownership, including company-owned and franchise restaurants.
“The quarter ending June (Q2 2019) marked the eleventh consecutive quarter of positive system sales growth, with a 22% system sales growth, for India and area countries," Samir Menon, managing director, KFC India. The results signify the brand’s continued positive momentum for the last three years, Menon added.
Pizza Hut and KFC apart, Yum! also runs the Taco Bell brand of fast food globally.
Earlier this year, Taco Bell said it would open 600 restaurants over the next 10 years, to make India its largest market outside the US after its signed New-Delhi based Burman Hospitality Pvt. Ltd as its master franchise partner for the brand in India.
The restaurant chain says it is now opening a new restaurant every 10 days for the Mexican-styled food brand.
“Taco Bell is gaining significant momentum in India, with a strong quarter of double digit same store sales growth," said Ankush Tuli, Managing Director, Taco Bell APAC. This, Tuli, added happened on the back of value offerings such as the Big Bell Box and introduction of global innovations like the Quesalupa.
In India, Yum! operates via three franchise partners namely RJ Corp-owned Devyani International, Sapphire Foods and more recently Burman Hospitality that was appointed as its master franchise for Taco Bell brand in India. Sapphire Foods was formed by a consortium of funds led by Samara Capital, which bought part of Yum! Brands’ franchise business in India in 2016 for an estimated ₹750 crore. Between the three they operate over 800 restaurants. KFC is the company’s largest brand in India, followed by Pizza Hut and Taco Bell.
Globally, worldwide system sales for Yum! Brands (excluding foreign currency translation) grew 10%, with KFC, Pizza Hut and Taco Bell each registering 10% growth. Total revenue for the quarter was down 4% to $1.31 billion.