Yum Brands, which owns fastfood chains like Pizza Hut, KFC and Taco Bell, has exceeded analysts’ expectations in the past quarter. Strong Pizza Hut sales have definitely contributed.
Pizza Hut finally achieves growth
Yum Brands’ third quarter turnover grew to 1.44 billion dollars (1.2 billion euro), slightly more than what analysts had expected (1.39 billion dollars) and a 3 % like-for-like turnover increase. Its turnover was twice as high last year, but Yum Brands did detach its Chinese activities since then. Net profit also grew, from 218 million dollars to 418 million dollars (360 million euro).
That net profit surge is thanks to Pizza Hut’s excellent performance: the three chains all achieved growth, but Pizza Hut’s 1 % (like-for-like) turnover growth was its first after five straight quarters with turnover slump. Pizza Hut’s improvement is good news for its investment plan, which launched in April and will cost 130 million dollars (110 million euro). The goal is to improve the restaurants and to increase the marketing investments. Before the end of the year, the company will also hire another 14,000 pizza delivery personnel.