The parent company of restaurant brands KFC, Pizza Hut, Taco Bell and The Habit Burger Grill, Yum! Brands, has reported strong results for the second quarter, which ended 30 June 2021.
The company’s worldwide system sales, excluding foreign currency translation, grew by 26%, with KFC at 35%, Taco Bell at 24% and Pizza Hut at 10%.
The KFC Division opened 522 gross new restaurants in 62 countries in the second quarter, and its operating margin increased 9.1% due to same-store sales growth, lower bad debt expense and unit growth.
The company noted that its KFC Division same-store sales grew 2%, while KFC US registered same-store sales growth of 19% on a two-year basis.
However, KFC International reported a decline of 1% in same-store sales on a two-year basis.
The second-quarter results suggested that the foreign currency translation favourably impacted operating profit by $23m.
The Yum! Brands Pizza Hut Division, which opened 210 gross new restaurants in 36 countries in the second quarter of 2021, has witnessed an operating margin increase of 4.5% points driven by same-store sales growth.
For the division, same-store sales grew 1% on a two-year basis, but for Pizza Hut International, same-store sales declined by 6%. However, same-store sales of Pizza Hut US grew 9% on a two-year basis.
The Taco Bell Division opened 91 gross new restaurants across 18 countries in the second quarter and has registered a 2.8% increase in operating margin due to same-store sales growth offset by higher restaurant costs. Its same-store sales grew 12% on a two-year basis.
The Habit Burger Grill Division opened four gross new restaurants in the US and Cambodia. Its same-store sales grew by 31% during this quarter.
For the year-to-date, the division’s same-store sales grew 22%, and its same-store sales grew 7% on a two-year basis.
Overall, Yum! Brands worldwide system sales, excluding foreign currency translation, grew 26%, with 23% same-store sales and 2% unit growth.
The company’s second-quarter GAAP EPS was $1.29, which is an increase of 91% over the prior-year quarter.
Yum! Brands CEO David Gibbs said: “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.”