Yum Has Solid 3rd Quarter
CBJ — Yum Brands posted solid third-quarter revenue and profit, thanks mainly to the robust sales figures generated by KFC and Taco Bell. However, Pizza Hut posted somewhat disappointing sales results.
In a fiercely competitive market, Yum launched several new value meal offers this year that included Taco Bell’s $1 nacho fries and $1 Triple Melt burritos as well as KFC’s “$20 Fill Up” meal. The business development efforts helped the parent company post stronger than expected growth at both food chains.
Same-restaurant sale at Taco Bell rose 5%. KFC, best known for its crispy fried chicken, reported a 3% rise.
Pizza Hut, however, remained a dark spot, with same-restaurant sales falling 1%, due to declines in the United States, where it faces slowing demand.
Yum’s net income rose 8.6% to $454 million in the three months ended September 30.