Yum! Brands has reported net income of $314m for the first quarter (Q1) of 2024, an increase of 4.6% from $300m a year previously.
For the quarter ended 31 March 2024, the company’s total revenues were $1.59bn, a decline of 2.8% from $1.64bn in Q1 2023.
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KFC’s overall US revenue fell by 8% and Pizza Hut’s fell by 6%. Due to geopolitical unrest, both franchises’ revenue in the Middle East, Turkiye and North Africa markets also decreased.
Yum! Brands reported a 3% fall in quarterly global same-store sales due to disrupted demand from inflation-weary consumers in the US and internationally for its KFC and Pizza Hut brands.
The company’s worldwide system sales rose 2%, with KFC registering growth of 4%. Taco Bell and Pizza Hut also posted growth of 4% each.
During Q1 2024, Yum! Brands’ digital sales approached $8bn, with a record digital mix of more than 50%, and the KFC division opened 509 gross new restaurants across 43 countries.
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By GlobalDataThe Taco Bell division opened 56 gross new restaurants across 14 countries in the latest quarter. Its international system sales excluding foreign currency rose by 6% and the brand posted a 2% increase in same-store sales, although its international same-store sales declined 2%.
Pizza Hut’s foreign currency translation negatively impacted operating profit by $1m, and it opened 240 gross new restaurants across 23 countries in Q1 2024.
Yum! Brands’ The Habit Burger Grill division opened three gross new restaurants, despite a 2% decline in system sales and an 8% drop in same-store sales.
Yum! Brands CEO David Gibbs said: “Despite a difficult operating environment, we delivered 6% core operating profit growth, demonstrating the resilience of our business model.
“As expected, same-store sales were pressured this quarter, but we are encouraged by strong two-year same-store sales growth and positive momentum exiting the quarter. First-quarter unit growth was robust with over 800 new unit openings, leading to 6% unit growth and positioning us to surpass 60,000 restaurants this year.
“Our digital sales mix reached a new record, exceeding 50% for the first time in our history. Our world-class franchisees, globally iconic brands and distinctive digital capabilities give me high confidence in our future growth.”
