US restaurant operator and owner of the Pizza Hut, KFC and Taco Bell fast food chains, YUM! Brands, grew worldwide sales by 5% last year, finishing 2017 with core operating profit growth of 7%.

Sales rose by 7% at Taco Bell, 6% at KFC and 2% at Pizza Hut, helped by the opening of 1,407 new units over the course of the year at a net unit growth of 3%.

In regards to like-for-like sales, KFC grew revenues by 3%, Taco Bell by 4% while Pizza Hut sales were flat, resulting in an overall worldwide lfl sales rise of 2%.

In the UK, sales at KFC increased by 5% as Pizza Hut’s dropped 2%. Revenue at both chains fell in the US by 1% and 4% respectively.

Covid-19 Report — Updated twice a week Understanding the Covid-19 outbreak, the economic impact and implications for specific sectors

Covid-19 executive briefing report cover
GlobalData

Our parent business intelligence company

Pizza Hut’s poor performance in it’s two biggest markets was offset by performance in developing markets such as China (+7%) and India (+10%). Australian sales increased by 14% for the year.

KFC sales in Australia, which is the brand’s second largest market, increased by 5%, while sales were up over 8% in both China and India, as well as in Russia (24%).

For the year, KFC opened 1,247 new international restaurants in 84 countries, 1,042 of which were opened in emerging markets.

Given the current climate, how long do you anticipate it will take for the global economy to recover post COVID-19?

View Results

Loading ... Loading ...

Across the company, fourth quarter like-for-like sales we up 2% as operating profit dropped by 6%, a fall put down to the unfavourable impact of foreign currency translation.

Greg Creed, YUM! chief executive officer, said: “As we close the first full year of our transformation, I am very proud of the progress we are making towards becoming a more focused, more franchised and more efficient company that generates more growth.

“During 2017, system sales grew a healthy 5% excluding the impact of lapping the 53rd week in 2016, with same-store sales growth of 2% and net new unit growth of 3%.

David Gibbs, president and chief financial officer, added “The fourth quarter was a solid ending to a year where Yum! Brands met our exceeded each component of our full-year guidance.

“Despite headwinds from refranchising dilution and lapping a 53rd week, we delivered full-year core operating profit growth of 7%.

“We are on track with our strategic transformation to accelerate growth and made significant progress towards achieving these objectives in 2017.”