Yum! Brands has announced 5% growth in its worldwide system sales for the first quarter (Q1) of the fiscal year 2025, which ended 31 March, excluding the impact of foreign currency translation.
The growth is primarily driven by an 11% increase in Taco Bell’s sales and a 5% rise for KFC.
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The company also reported a 3% increase in unit count, with 751 new units opened during the quarter.
Digital sales continue to be a robust segment for Yum! Brands, nearing $9bn and accounting for 55% of the total sales mix.
However, foreign currency translation had a $11m unfavourable impact on divisional operating profit.
The KFC division led the expansion with 528 new restaurants across 52 countries.
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By GlobalDataThe company-owned restaurant margins were affected by the KFC UK stores acquired in the second quarter of 2024, with margins lower in Q1 due to seasonality and additional maintenance.
The Taco Bell division also saw significant growth, opening 24 new restaurants in eight countries.
In the US, Taco Bell’s system sales increased 11%, while international sales, excluding foreign currency translation, increased 8%.
Same-store sales for Taco Bell US and International grew by 9% and 3% respectively.
Meanwhile, the Pizza Hut division opened 198 new restaurants across 34 countries.
The division’s operating profit growth was negatively impacted by expenses associated with the transition of four franchise entities to new ownership and by the timing of technology spending in advertising and other services costs.
The Habit Burger & Grill division opened one new restaurant, with system sales remaining flat and same-store sales falling 3%.
Yum! Brands CEO David Gibbs said: “I’m incredibly proud of our teams’ ability to stay nimble and deliver industry-leading results in a complex consumer environment. This quarter, we achieved 8% core operating profit growth, demonstrating the strength and resilience of our business model.
“Our twin growth engines led the way, with Taco Bell US reporting a remarkable 9% same-store sales growth and KFC International accelerating same-store sales growth while generating 7% unit growth year-on-year.”
