Latest news with #DavidGibbs
Yahoo
4 days ago
- Business
- Yahoo
KFC and Taco Bell are doubling down on Gen Z
Yum Brands reported its Q2 earnings on Tuesday, narrowly missing analyst expectations. The parent company of Taco Bell, KFC, and Pizza Hut is doubling down on attracting Gen Z customers. Expect more specialty drink spinoffs from the Live Más Café and signature dipping sauces from Saucy. Yum Brands is all in on capturing the Gen Z market, its CEO David Gibbs announced during his final call as chief executive on Tuesday. Gibbs, who will be succeeded by CFO Chris Turner in October, told investors during the company's Q2 earnings call that he believes the company is employing the right innovation strategy as its brands double down on trending drink and sauce concepts aimed at younger customers. The parent company of Taco Bell, KFC, Pizza Hut, and Habit Burger & Grill, reported its quarterly earnings before the bell. With $1.44 adjusted earnings per share and $1.93 billion in revenue, it narrowly missed analyst expectations. Taco Bell's Live Más Café model, focused on customizable drinks, will be expanding this year, as will KFC's chicken strip and sauce concept, Saucy, and its Kwench line of drinks, Gibbs said. Both chains' specialty spinoffs, designed to attract Gen Z customers, have been driving increasing sales, according to the earnings call. In March, Taco Bell announced it would launch twice as many new menu items in 2025 as it did in 2024, focusing largely on limited-time offerings to drive consumer excitement. Combined with its December launch of the Live Más Café, the new launches are panning out well for the quick-service conglomerate. "The café was inspired by Gen Z's love for curated, customizable drinks and offers over 30 signature beverages from Churro Chillers and specialty coffees to Refrescas and Dirty Mountain Dew Baja Blast Dream sodas," Gibbs told investors during the call, adding that the test store saw "a significant increase in transactions while more beverage users are visiting the café and choosing to dine in." Data from the location intelligence and foot traffic data software firm found that Taco Bell carried Yum Brands' US foot traffic in Q2. New, value-driven menu offerings drove Taco Bell's visits up 2.6% year over year, with average visits per location growing by 1.5%, the firm found. Yum Brands announced last month it would expand its Live Más Café model within existing Taco Bell restaurants to 30 locations across Southern California and Texas by year-end. "While Taco Bell is sort of leading the way on getting into the new category entry points on beverages for Yum!, we see the same opportunity for KFC," Gibbs said. "And KFC has their own program, Kwench, which is now going into test. I'm very excited about the impact that that can have on the business." KFC's Kwench line of drinks, including refreshers, shakes, and iced coffees, is being tested at select locations, primarily in Australia and the UK. Gibbs did not elaborate on whether or when the new drink offerings would be tested in the US market. Despite soft numbers in the US, KFC's international business in South Africa, Spain, Canada, and Japan strengthened the chain's sales in Q2. Business Insider previously reported that the first week of KFC's "Kentucky Fried Comeback" campaign in the US market saw a record-breaking surge in KFC Rewards sign-ups, unprecedented digital traffic for the chain, and a marked improvement in foot traffic from the week prior, suggesting the turnaround might have some early traction. In an effort to attract younger customers in the States, KFC also plans to continue leveraging its new Saucy restaurant concept, focusing on customizable chicken tenders and a variety of dipping sauces. Gibbs announced plans to open "several additional test units" by year's end near the existing Saucy location in Orlando, which opened in December. "We continue to be encouraged that weekly sales have averaged materially higher than the pre-existing KFC since opening and that we're connecting with a younger demographic as 1/3 of Saucy consumers are under age 30," Gibbs said during the Tuesday call. "We have a lot of learning ahead of us, and we are eager to leverage the invaluable consumer insights relevant for our larger KFC US system." Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
KFC and Pizza Hut U.S. challenged by ‘gaps in value perception'
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. Yum Brands reported second quarter results Tuesday before market and — once again — Taco Bell is doing the heavy lifting for the company's domestic business. Taco Bell U.S.'s same-store sales grew 4%, while KFC and Pizza Hut U.S. both fell by 5%, and Habit Burger & Grill's same-store sales declined by 4%. During the company's earnings call, chief executive officer David Gibbs said the KFC and Pizza Hut domestic businesses struggled from 'gaps in value perception.' KFC's performance marked its sixth straight quarter of same-store sales declines. The company is working to strike the right balance between innovative product launches and value through its new Comeback campaign, launched in response to market share loss to competitors such as Popeyes, Chick-fil-A, and Raising Cane's last year. Gibbs said Scott Mezvinsky, who was named KFC CEO earlier this year, has a 'compelling strategy on energizing the brand, enhancing relevance, and deepening engagement,' informed by his experience at Taco Bell, where he most recently served as president of North America and International. In global markets, KFC leverages successful product launches to modernize the brand, and we may see more of that trickle into the domestic market. For instance, the Korean BBQ Sandwich launch in Spain was recently introduced to additional European markets, while KFC's Kwench beverage lineup is also expanding its test to additional markets. Gibbs said KFC's Saucy concept, first opened in December in Orlando, Fla., is generating 'materially higher weekly sales' than the traditional KFC it replaced, and the company plans to add several more test units by the end of this year near the original location. 'Saucy is connecting with younger demographics and one-third of its customers are under the age of 30,' Gibbs said. 'We're eager to leverage invaluable consumer insights relevant to the larger KFC system.' For Pizza Hut, Gibbs said the chain's innovative launches, including Cheesy Pizza Bites and Ranch Lover's Flight, mixed well, but 'insufficient value messaging resulted in transaction weakness.' 'The team learned from this and going forward will establish compelling value propositions, including Wing Wednesdays and Tuesday $2 Personal Pan Pizzas,' Gibbs said. Pizza Hut also launched a new mobile app, which is expected to create a tailwind in the third quarter. The Habit's negative performance was driven by continued softness in consumer demand, Gibbs said, and the chain has improved its value offerings in response, including the launch of the Gotta Habit Menu. Taco Bell shines once again Meanwhile, Taco Bell outpaced the broader limited-service category by 4 percentage points, according to Gibbs. Much of this momentum has been driven by the creation of new occasions, a stronger focus on beverages, and Crispy Chicken launches, such as nuggets, tacos, and burritos. Total chicken sales at Taco Bell are up more than 50% in the past two years. 'We expect this momentum to continue as Crispy Chicken becomes a permanent platform in 2026,' Gibbs said. 'The momentum behind new occasions will also continue with shredded beef later this year.' Taco Bell also continues to work toward its aspiration of reaching $5 billion in beverage sales by 2030 with the expanded test of its Live Más Café concept to 30 restaurants by the end of this year. 'Beverages is one of those things we're incredibly excited about. Nobody is more naturally positioned to succeed in beverage than Taco Bell,' Gibbs said. 'Live Más Caféis putting a lot of our theories into actions in a big way. The results have been stellar and prompted us to lean in and be much more aggressive on beverages.' Taco Bell has also found its stride in value, including its $5, $7, $9 Luxe Box offerings. Gibbs said the chain is well positioned to thrive in the current value environment and has even recently gained market share from not just quick-service competitors, but also fast casual brands. 'We've had sales and (transaction) growth across all income bands at Taco Bell,' he said. 'If you take the top 10 restaurant companies that are publicly traded, Taco Bell is the only one that has had positive quarterly sales for five years in a row. This year, they haven't had a single negative week. Most people are reporting negative quarters, we haven't had a negative week. The brand is truly on a roll.' Contact Alicia Kelso at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
5 days ago
- Business
- Business Insider
KFC and Taco Bell are doubling down on Gen Z
Yum Brands is all in on capturing the Gen Z market, its CEO David Gibbs announced during his final call as chief executive on Tuesday. Gibbs, who will be succeeded by CFO Chris Turner in October, told investors during the company's Q2 earnings call that he believes the company is employing the right innovation strategy as its brands double down on trending drink and sauce concepts aimed at younger customers. The parent company of Taco Bell, KFC, Pizza Hut, and Habit Burger & Grill, reported its quarterly earnings before the bell. With $1.44 adjusted earnings per share and $1.93 billion in revenue, it narrowly missed analyst expectations. Taco Bell's Live Más Café model, focused on customizable drinks, will be expanding this year, as will KFC's chicken strip and sauce concept, Saucy, and its Kwench line of drinks, Gibbs said. Both chains' specialty spinoffs, designed to attract Gen Z customers, have been driving increasing sales, according to the earnings call. In March, Taco Bell announced it would launch twice as many new menu items in 2025 as it did in 2024, focusing largely on limited-time offerings to drive consumer excitement. Combined with its December launch of the Live Más Café, the new launches are panning out well for the quick-service conglomerate. "The café was inspired by Gen Z's love for curated, customizable drinks and offers over 30 signature beverages from Churro Chillers and specialty coffees to Refrescas and Dirty Mountain Dew Baja Blast Dream sodas," Gibbs told investors during the call, adding that the test store saw "a significant increase in transactions while more beverage users are visiting the café and choosing to dine in." Data from the location intelligence and foot traffic data software firm found that Taco Bell carried Yum Brands' US foot traffic in Q2. New, value-driven menu offerings drove Taco Bell's visits up 2.6% year over year, with average visits per location growing by 1.5%, the firm found. Yum Brands announced last month it would expand its Live Más Café model within existing Taco Bell restaurants to 30 locations across Southern California and Texas by year-end. "While Taco Bell is sort of leading the way on getting into the new category entry points on beverages for Yum!, we see the same opportunity for KFC," Gibbs said. "And KFC has their own program, Kwench, which is now going into test. I'm very excited about the impact that that can have on the business." KFC's Kwench line of drinks, including refreshers, shakes, and iced coffees, is being tested at select locations, primarily in Australia and the UK. Gibbs did not elaborate on whether or when the new drink offerings would be tested in the US market. Despite soft numbers in the US, KFC's international business in South Africa, Spain, Canada, and Japan strengthened the chain's sales in Q2. Business Insider previously reported that the first week of KFC's " Kentucky Fried Comeback" campaign in the US market saw a record-breaking surge in KFC Rewards sign-ups, unprecedented digital traffic for the chain, and a marked improvement in foot traffic from the week prior, suggesting the turnaround might have some early traction. In an effort to attract younger customers in the States, KFC also plans to continue leveraging its new Saucy restaurant concept, focusing on customizable chicken tenders and a variety of dipping sauces. Gibbs announced plans to open "several additional test units" by year's end near the existing Saucy location in Orlando, which opened in December. "We continue to be encouraged that weekly sales have averaged materially higher than the pre-existing KFC since opening and that we're connecting with a younger demographic as 1/3 of Saucy consumers are under age 30," Gibbs said during the Tuesday call. "We have a lot of learning ahead of us, and we are eager to leverage the invaluable consumer insights relevant for our larger KFC US system."
Yahoo
7 days ago
- Business
- Yahoo
Yum! Brands Reports Second-Quarter Results
KFC International Unit Growth 7% and Taco Bell Same-Store Sales Growth 4%;Over $9 Billion Digital System Sales with Record 57% Digital Sales Mix LOUISVILLE, Ky., August 05, 2025--(BUSINESS WIRE)--Yum! Brands, Inc. (NYSE: YUM) today reported results for the second quarter ending June 30, 2025. Second-quarter GAAP EPS was $1.33 and second-quarter EPS excluding Special Items was $1.44, a 7% increase year-over-year. DAVID GIBBS COMMENTS David Gibbs, CEO, said "Our second-quarter results are a testament to the power of our bold food innovation, digital transformation, and the strength of our iconic brands. Taco Bell U.S. meaningfully outpaced the category with 4% same-store sales growth, and KFC International opened 565 gross new units. I am confident that with our strong development across the system, improving value propositions, and exciting new uses of our proprietary, integrated tech stack, Yum! is well positioned to win in an ever-changing consumer landscape. As I reflect on my incredible 36-year journey with Yum!, it's been a joy to bring our iconic brands to consumers around the world in collaboration with our world-class franchise partners and team members. Yum! is in an enviable position with the very best talent and leaders in this industry at the helm of our global brands. I couldn't be more confident passing the torch to Chris Turner, whose deep understanding of our business and bold vision will continue to propel Yum! forward." RECENT STRATEGIC ANNOUNCEMENTS On June 17th, we announced that the Board of Directors unanimously elected Chris Turner to succeed David Gibbs as Chief Executive Officer, effective October 1, 2025. David will serve as an adviser to the Company until the end of 2026 to ensure a seamless transition. Chris has served as Chief Financial Officer since 2019 and expanded his role to include Chief Franchise Officer in 2024. During his time at Yum!, Chris has been instrumental in driving bold actions including transforming the digital and technology organization, launching Byte by Yum!, centralizing Yum!'s global supply chain, and driving ideation for new, bold concepts within our portfolio. On June 26th, Taco Bell announced plans to scale its innovative beverage concept Live Más Café to 30 locations by the end of 2025. The concept offers over 30 signature beverages, from Churro Chillers and specialty coffees to Refrescas and Dirty Mountain Dew® Baja Blast® Dream Sodas. This launch is part of the brand's long-term beverage strategy to reach $5 billion in beverage sales by 2030. SECOND-QUARTER HIGHLIGHTS Worldwide system sales grew 4%, excluding foreign currency translation, led by Taco Bell at 6% and KFC at 5%. Unit count increased 3% including 871 gross new units in the quarter. Robust digital system sales exceeding $9 billion, with record digital mix of approximately 57%. Foreign currency translation favorably impacted divisional operating profit by $4 million. Reported Results % Change System SalesEx F/X Same-Store Sales Units GAAP OperatingProfit CoreOperating Profit1 KFC Division +5 +2 +5 +9 +8 Taco Bell Division +6 +4 +2 +5 +5 Pizza Hut Division (1) (1) Even (15) (15) Worldwide +4 +2 +3 +2 +2 Second-Quarter Year-to-Date 2025 2024 % Change 2025 2024 % Change GAAP EPS $1.33 $1.28 +4 $2.23 $2.38 (6) Less Special Items EPS1 $(0.11) $(0.07) NM $(0.51) $(0.12) NM EPS Excluding Special Items $1.44 $1.35 +7 $2.74 $2.50 +10 1 See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Core Operating Profit and Special Items. All comparisons are versus the same period a year ago. System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further details. Digital system sales includes all transactions at system restaurants where consumers utilize ordering interaction that is primarily facilitated by automated technology. KFC DIVISION Second-Quarter Year-to-Date %/ppts Change %/ppts Change 2025 2024 Reported Ex F/X 2025 2024 Reported Ex F/X Restaurants 32,369 30,689 +5 N/A 32,369 30,689 +5 N/A System Sales ($MM) 8,721 8,226 +6 +5 17,061 16,354 +4 +5 Same-Store Sales Growth (%) +2 (3) NM NM +2 (3) NM NM Franchise and Property Revenues ($MM) 437 405 +8 +7 844 802 +5 +6 Operating Profit ($MM) 365 334 +9 +8 697 647 +8 +8 Operating Margin (%) 43.0 46.6 (3.6) (3.3) 42.9 48.0 (5.1) (4.7) Second-Quarter (% Change) Year-to-Date (% Change) International U.S. International U.S. System Sales Growth Ex F/X +7 (8) +7 (5) Same-Store Sales Growth +3 (5) +3 (3) KFC Division opened 566 gross new restaurants across 58 countries. Company-owned restaurant margins were 12.1%, up slightly year-over-year. Foreign currency translation favorably impacted operating profit by $4 million. KFC Markets1 Percent of KFCSystem Sales2 System Sales Growth Ex F/X Second-Quarter(% Change) Year-to-Date(% Change) China 27% +5 +4 United States 14% (8) (5) Europe 12% +7 +7 Asia 11% +10 +9 Latin America 8% +10 +10 Australia 7% +3 +2 United Kingdom 6% +5 +5 Middle East / Turkey / North Africa 6% +10 +10 Africa 5% +11 +11 Canada 2% +9 +10 India 2% +10 +9 1 Refer to for a list of the countries within each of the markets. 2 Reflects Full Year 2024. TACO BELL DIVISION Second-Quarter Year-to-Date %/ppts Change %/ppts Change 2025 2024 Reported Ex F/X 2025 2024 Reported Ex F/X Restaurants 8,756 8,565 +2 N/A 8,756 8,565 +2 N/A System Sales ($MM) 4,275 4,017 +6 +6 8,255 7,614 +8 +8 Same-Store Sales Growth (%) +4 +5 NM NM +6 +3 NM NM Franchise and Property Revenues ($MM) 248 234 +6 +6 482 444 +9 +9 Operating Profit ($MM) 262 250 +5 +5 502 458 +10 +10 Operating Margin (%) 36.8 37.5 (0.7) (0.7) 36.7 36.3 0.4 0.5 Taco Bell Division opened 50 gross new restaurants across 10 countries. Taco Bell U.S. system sales grew 6% and Taco Bell International system sales excluding foreign currency translation, grew 11%. Taco Bell U.S. and Taco Bell International same-store sales both grew 4%. Taco Bell U.S. company-owned restaurant margins were 24.5%, a 110 basis point decrease year-over-year. PIZZA HUT DIVISION Second-Quarter Year-to-Date %/ppts Change %/ppts Change 2025 2024 Reported Ex F/X 2025 2024 Reported Ex F/X Restaurants 19,768 19,864 Even N/A 19,768 19,864 Even N/A System Sales ($MM) 3,116 3,140 (1) (1) 6,144 6,307 (3) (2) Same-Store Sales Growth (%) (1) (3) NM NM (1) (5) NM NM Franchise and Property Revenues ($MM) 147 148 (1) (1) 290 296 (2) (2) Operating Profit ($MM) 80 94 (15) (15) 155 187 (17) (17) Operating Margin (%) 33.5 39.3 (5.8) (5.7) 32.9 39.2 (6.3) (6.1) Second-Quarter (% Change) Year-to-Date (% Change) International U.S. International U.S. System Sales Growth Ex F/X +2 (6) +1 (7) Same-Store Sales Growth +2 (5) +1 (5) Pizza Hut Division opened 254 gross new restaurants across 32 countries. Pizza Hut Division operating profit growth was negatively impacted in the quarter by 3 percentage points due to timing of technology spending within Franchise advertising and other services expense, 2 percentage points due to expense associated with three franchise entities that are transitioning to new ownership and 2 percentage points due to expenses associated with our bi-annual Global Franchise Convention. Foreign currency translation had a negligible impact on operating profit. Pizza Hut Markets1 Percent of Pizza HutSystem Sales2 System Sales Growth Ex F/X Second-Quarter(% Change) Year-to-Date(% Change) United States 42% (6) (7) China 18% +1 Even Asia 13% +7 +5 Europe 11% Even (2) Latin America 7% Even (3) Middle East / Africa 4% +9 +11 Canada 3% Even +3 India 2% +2 +5 HABIT BURGER & GRILL DIVISION Habit Burger & Grill Division opened 1 gross new restaurant. Habit Burger & Grill Division system sales declined 1% with same-store sales declining 4%. OTHER ITEMS See reconciliation of Non-GAAP Measurements to GAAP results within this release for further detail of Special Items by financial statement line item including the impact of Special Items on General and administrative expenses. Disclosures pertaining to outstanding debt in our Restricted Group capital structure will be provided at the time of the filing of the second-quarter Form 10-Q. LONG-TERM GROWTH ALGORITHM The Company targets the following long-term financial performance metrics, first announced in 2022, that it believes it can achieve over an extended period of time, on average: 5% Unit Growth 7% System Sales Growth, excluding F/X and 53rd week; and At least 8% Core Operating Profit Growth, excluding F/X and 53rd week3 1 Refer to for a list of the countries within each of the markets. 2 Reflects Full Year 2024. 3 At this time, we are unable to forecast any Special Items or any impact from changes in F/X rates, and therefore cannot provide an estimate of Operating Profit Growth on a GAAP basis. CONFERENCE CALL Yum! Brands, Inc. will host a conference call to review the company's financial performance and strategies at 8:15 a.m. Eastern Time August 5, 2025. The number is 404/975-4839 for U.S. callers, 833/950-0062 for Canada callers, and +1/404-975-4839 for international callers, conference ID 362231. The call will be available for playback beginning at 10:00 a.m. Eastern Time August 5, 2025 through August 12, 2025. To access the playback, dial 866/813-9403 in the U.S., 226/828-7578 in Canada, and +1/929-458-6194 internationally, conference ID 252965. The webcast and the playback can be accessed by visiting Yum! Brands' website, and selecting "Q2 2025 Yum! Brands, Inc. Earnings Conference Call." ADDITIONAL INFORMATION ONLINE Quarter-end dates for each division, restaurant count details, definitions of terms and Restricted Group financial information are available at Reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures are included in our Condensed Consolidated Summary of Results. FORWARD-LOOKING STATEMENTS This announcement may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "likely," "seek," "project," "model," "ongoing," "will," "should," "forecast," "outlook" or similar terminology. These statements are based on and reflect our current expectations, estimates, assumptions and/ or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance or capital structure of Yum! Brands, will prove to be correct or that any of our expectations, estimates or projections will be achieved. Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: food safety and food- or beverage-borne illness concerns; adverse impacts of health epidemics, deterioration in public health conditions or the occurrence of other catastrophic or unforeseen events; the success and financial stability of our concepts' franchisees, particularly in light of challenging macroeconomic conditions; the success of our development strategy; anticipated benefits from past or potential future acquisitions, investments, other strategic transactions or initiatives, or our portfolio business model; our significant exposure to the Chinese market; our global operations and related exposure to geopolitical instability, including as a result of the Middle East conflict as well as the expansion or threatened expansion of restrictive trade policies which could also impact sentiment for U.S. brands; foreign currency risks and foreign exchange controls; our ability to protect the integrity or availability of IT systems or the security of confidential information and other cybersecurity risks; compliance with data privacy and data protection legal requirements and reporting obligations; our ability to successfully and securely implement technology initiatives, including utilization of artificial intelligence; our increasing dependence on digital commerce platforms; the impact of social media; our ability to protect our trademarks or other intellectual property; shortages or interruptions in the availability and the delivery of food, equipment and other supplies; the loss of key personnel or failure to successfully transition senior management, labor shortages and increased labor costs, including as a result of state and local legislation related to wages and working conditions; changes in food prices and other operating costs; our corporate reputation, the value and perception of our brands and changes in consumer preferences such as wellness trends; evolving expectations and requirements with respect to social and environmental sustainability matters; adverse effects of severe weather and climate change; pending or future litigation and legal claims or proceedings; changes in, or noncompliance with, legal requirements; tax matters, including changes in tax rates or laws, impositions of new taxes, tax implications of our restructurings, or disagreements with taxing authorities; changes in consumer discretionary spending and macroeconomic conditions, including inflationary pressures and elevated interest rates; competition within the retail food industry; and risks relating to our level of indebtedness. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. The forward-looking statements included in this announcement are only made as of the date of this announcement and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions "Risk Factors" and "Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q) for additional detail about factors that could affect our financial and other results. Yum! Brands, Inc., based in Louisville, Kentucky, and its subsidiaries franchise or operate a system of over 61,000 restaurants in more than 155 countries and territories under the company's concepts – KFC, Taco Bell, Pizza Hut and Habit Burger & Grill. The Company's KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-inspired food and pizza categories, respectively. Habit Burger & Grill is a fast casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. In 2024, Yum! was named to the Dow Jones Sustainability Index North America and 3BL's list of 100 Best Corporate Citizens. In 2025, the Company was recognized among TIME magazine's list of Best Companies for Future Leaders. In addition, KFC, Taco Bell and Pizza Hut led Entrepreneur's Top Global Franchises 2024 list and were ranked in the first 25 of Entrepreneur's 2025 Franchise 500, with Taco Bell securing the No. 1 spot in North America for the fifth consecutive year. Category: Earnings View source version on Contacts Analysts are invited to contact:Matt Morris, Head of Investor Relations at 888/298-6986 Members of the media are invited to contact:Lori Eberenz, Director, Public Relations, at 502/874-8200 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
17-07-2025
- Business
- Miami Herald
Pizza Hut's wild new menu offer for customers keeps selling out
Pizza Hut, which is owned by Yum Brands (YUM) , is pulling out all the stops to reverse a startling consumer trend it recently spotted in its stores. During the first few months of 2025, the pizza chain's same-store sales declined by 2% year-over-year, according to Yum Brands' latest earnings report. Specifically in the U.S., Pizza Hut's system sales decreased by 7%. Don't miss the move: Subscribe to TheStreet's free daily newsletter During an earnings call in April, Yum Brands CEO David Gibbs said Pizza Hut's same-store sales performance in the U.S. was "disappointing." He also warned investors that the pizza chain is currently operating in an "intense competitive environment." Related: Pizza Hut struggles to reverse troubling consumer trend The decrease in sales comes during a time when many consumers are scaling back fast-food purchases as prices rise for everyday goods. According to KPMG's Consumer Pulse Summer 2025 report, 69% of U.S. consumers in the survey said that they eat at home more often rather than dining out, and 85% said that saving money was the main reason for this decision. The survey also found that U.S. consumers expect to spend 7% less each month on restaurants this summer. Amid this alarming consumer trend, Pizza has decided to launch a generous meal deal to boost its low sales. For this month only, the pizza chain is offering customers one-topping personal pan pizzas for $2 each every Tuesday. The deal officially launched on July 8 and can be obtained in-store and online. The offer only applies to carryout orders and limits each customer to up to four personal pan pizzas. Related: Chick-fil-A angers customers with major change in stores In a statement to USA Today, a Pizza Hut spokesperson said that personal pan pizzas have been selling out in its stores since the deal launched earlier this month. "The response has been nothing short of incredible and we are even selling out of Personal Pan Pizzas at thousands of restaurants across the country," said the spokesperson. "Our goal is to give guests more of what they love and this offering has proven to do just that." The move from Pizza Hut comes after it rolled out generous deals and switched up its menu earlier this year to attract back customers. For example, in February, the pizza chain introduced its Ultimate Hut Bundle, in which customers can order two medium pizzas, any eight boneless wings, sticks, and two dipping sauces starting at $24.99. More Food + Dining: Papa Johns makes major menu change to win back customersSteak 'n Shake's beef tallow fries aren't as healthy as they appearChick-fil-A angers customers with major change in stores Then in April, Pizza Hut added its fan-favorite Cheesy Bites Pizza back onto its menu for a limited time. It also launched three new exclusive dipping sauces: Chipotle Ranch, Ultimate Ranch, and Pepperoni Ranch. Most recently, Pizza Hut added four new limited-edition pizzas to its menu at discounted prices. This includes its new Spicy Hawaiian Lover's pizza, Meat Lover's pizza, Pepperoni Lover's pizza and Veggie Lover's pizza. A large size of one of these pizzas costs $12.99, which is a deal because a large pizza at Pizza Hut usually costs a little under $20, depending on the region. Related: Domino's Pizza announces big menu change after major loss The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
