Yum! Brands has reported an 8% decline in KFC UK sales for the quarter ending 30 June.
KFC sales in the UK dropped by 1% in the year to date, while Pizza Hut Europe sales grew 20% in the year to date, with the division opening 287 new restaurants in 43 countries during the quarter.
In its quarterly update, the operator announced total revenue of $1.6bn – a 2% increase from the same period in 2021 – and a 2% decline in operating profit to $554mn. Globally, Taco Bell sales grew by 10%, while KFC grew by 1%, and Pizza Hut remained flat.
Worldwide system sales grew by 3%, led by Taco Bell, which saw international system sales increasing by 31% and opened 82 gross new restaurants in 13 countries.
Operating profit for KFC and Pizza Hut were negatively impacted by the closure of Russian operations for both brands, with 4% of KFC’s worldwide units removed in Russia.
Unit count and system sales exclude Russian operations as the operator completed the transfer of its Pizza Hut Russia business to an operator in the process of converting it to a non-Yum business. It is also in the process of transferring ownership of its KFC Russia operation.
David Gibbs, CEO, commented: “Our second quarter system sales grew 5% excluding Russia, driven by sustained development momentum.
”Despite a complex operating environment and lapping the strongest same-store sales growth in our history, our global business continues to perform well, led by industry-leading results at Taco Bell U.S. including 8% same-store sales growth and in-line margins year-over-year.
“We are pleased with the continued growth of our digital business with digital sales of nearly $6 billion, fuelled by the adoption of our global platforms and capabilities.
“Our second quarter results demonstrate the resilience and power of our unmatched global scale, unrivalled talent and world-class franchise partners that are the driving force behind the success of our iconic brands.”
