KFC, Pizza Hut and Taco Bell see sales recover

KFC UK system sales are up 80% on the previous year, for the year to date, which is the highest growth of all markets. The UK accounts for 6% of KFC’s system sales worldwide.

Yum reported worldwide Q2 growth of 26%, with 23% same-store sales and 2% unit growth. The UK performances of Pizza Hut and Taco Bell were not broken out in the company’s trading update, although both brands saw strong global sales growth. Pizza Hut grew sales by 26% in Q2 across Europe, with delivery continuing to be Pizza Hut’s primary driver of growth.

Yum chief executive David Gibbs said in a statement: ‘our strong second-quarter results, led by record unit development and 23% same-store sales growth are a testament to our iconic brands, world-class talent, and best-in-class franchisees.’ He added that, ‘this sustained momentum was underpinned by our investments in digital and off-premise and the agility of our brands to meet the needs of consumers in an ever-changing environment.’

During Q2, digital sales rose 35% to over $5 billion, with Gibbs suggesting all of Yum’s chains, “are very rapidly becoming digital brands”.

“Digital is one of those things that has no downside … The average check is higher. There’s labour savings from processing orders on digital,” he added.

In the US, Taco Bell launched a rewards program last year that has contributed to the growth of the brand’s digital sales.

“We’re seeing significant uptick in frequency and higher spend for visits, leading to an increase in overall spend of 35% for active customers in the Taco Bell rewards program compared to their pre-loyalty behaviour,” Gibbs said.