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Business Wire
30-04-2025
- Business
- Business Wire
Yum! Brands Reports First-Quarter Results
LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands, Inc. (NYSE: YUM) today reported results for the first quarter ended March 31, 2025. First-quarter GAAP EPS was $0.90 and first-quarter EPS excluding Special Items was $1.30, a 13% increase. DAVID GIBBS COMMENTS David Gibbs, CEO, 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 U.S. reporting a remarkable 9% same-store sales growth and KFC International accelerating same-store sales growth while generating 7% unit growth year-over-year. Byte by Yum! is driving digital momentum, with more franchisees eager to explore the full suite of product offerings after experiencing the technology firsthand at our Global Franchise Convention. As I embark on my final year as CEO, I'm confident that Yum!'s world-class franchisees, talent, global scale, proprietary technologies, and our bold growth strategies will continue to position the company for long-term success." RECENT STRATEGIC ANNOUNCEMENTS On March 4 th, Taco Bell hosted a unique investor event, Consumer Day, in Brooklyn where the leadership team announced its business growth plan, R.I.N.G. The Bell, and introduced bold growth targets through 2030. Later in the day, Taco Bell hosted its second annual Live Más Live event, where the brand unveiled its 2025 innovation pipeline that includes over 30 new products and unexpected collaborations. On March 18 th, we announced an industry-first collaboration with NVIDIA to accelerate the development of innovative AI technologies for Yum! restaurants around the globe. This collaboration brings the two powerhouses together to integrate AI into our restaurants at an unprecedented scale. Leveraging NVIDIA's advanced AI platforms, Yum! aims to become the leader in integrating technology into every touch point, across every restaurant, around the world. On March 31 st, David Gibbs announced his intention to retire in the first quarter of 2026. The Board has established a selection committee to identify and appoint the best candidate to succeed David and lead Yum! into its next chapter of growth. David has spent 36 years with Yum! in various roles including as CEO since January 2020. He's led the Company's digital transformation, re-ignited the development engine and successfully navigated the COVID-19 pandemic to make Yum! a top performer in the restaurant industry. FIRST-QUARTER HIGHLIGHTS Worldwide system sales grew 5%, excluding foreign currency translation, led by Taco Bell at 11% and KFC at 5%. Unit count increased 3% including 751 gross new units in the quarter. Robust digital system sales approaching $9 billion, with digital mix of approximately 55%. Foreign currency translation unfavorably impacted divisional operating profit by $11 million. First-Quarter 2025 2024 % Change GAAP EPS $0.90 $1.10 (18) Less Special Items EPS 1 $(0.40) $(0.05) NM EPS Excluding Special Items $1.30 $1.15 +13 Expand 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. Expand KFC DIVISION First-Quarter (% Change) International U.S. System Sales Growth Ex F/X +6 (2) Same-Store Sales Growth +3 (1) Expand KFC Division opened 528 gross new restaurants across 52 countries. Company-owned restaurant margins were 9.3% with year-over-year comparability primarily impacted by the KFC U.K. stores acquired in the second quarter of 2024. Margins of those stores were lower in Q1 due to seasonality and additional maintenance of the store base. Excluding the impact of lapping leap day, system sales growth excluding foreign currency translation would have been +6%. Foreign currency translation unfavorably impacted operating profit by $9 million. 1 Refer to for a list of the countries within each of the markets. 2 Reflects Full Year 2024. Expand TACO BELL DIVISION Taco Bell Division opened 24 gross new restaurants across 8 countries. Taco Bell U.S. system sales grew 11% and Taco Bell International system sales excluding foreign currency translation, grew 8%. Taco Bell U.S. and Taco Bell International same-store sales grew 9% and 3%, respectively. Company-owned restaurant margins were 22.4%, down slightly year-over-year. PIZZA HUT DIVISION First-Quarter (% Change) International U.S. System Sales Growth Ex F/X Even (7) Same-Store Sales Growth Even (5) Expand Pizza Hut Division opened 198 gross new restaurants across 34 countries. Pizza Hut Division Operating profit growth was negatively impacted in the quarter by 7 percentage points due to expenses associated with four franchise entities that are transitioning to new ownership and by 3 percentage points due to timing of technology spending within Franchise advertising and other services expenses. Excluding the impact of lapping leap day, system sales growth excluding foreign currency translation would have been (2%). Foreign currency translation unfavorably impacted operating profit by $1 million. HABIT BURGER & GRILL DIVISION Habit Burger & Grill Division opened 1 gross new restaurant. Habit Burger & Grill Division system sales were flat with same-store sales declining 3%. 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 first-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 week 3 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. Expand 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 April 30, 2025. The number is 404/975-4839 for U.S. callers, 833/950-0062 for Canada callers, and +1/929-526-1599 for international callers, conference ID 540566. The call will be available for playback beginning at 10:00 a.m. Eastern Time April 30, 2025 through May 7, 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 647857. The webcast and the playback can be accessed by visiting Yum! Brands' website, and selecting 'Q1 2025 Yum! Brands, Inc. Earnings Call.' 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. 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 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, 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 nearly 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, Newsweek's list of America's Most Responsible Companies, USA Today's America's Climate Leaders 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
Yahoo
12-04-2025
- Business
- Yahoo
It's Clear Why KFC Is Struggling To Keep Its Doors Open
We wouldn't blame you for thinking that KFC is doing just fine. On the face of things, the world's most famous fried chicken brand is still absolutely everywhere, with well over 30,000 restaurants in operation worldwide and a brand value of approximately 6.7 billion dollars in 2024, according to Statista. Given that this value was up on the previous year, it kinda seems like the sky's the limit for Kentucky Fried Chicken. However, if you peek under that fried chicken skin (sorry, we know it's a gross image, but we couldn't resist), you'll find a restaurant chain in crisis. KFC has had a rocky few years, with restaurants suddenly closing their doors and competitors in the fried chicken space threatening the very soul of this iconic brand. That's if its soul is still alive and kicking, that is. In recent years KFC has seen a noticeable decline in quality and service standards, with customers pointing out that it's a shadow of its former self (and which could indicate that it's struggling). As well as this, its sheer identity as being Kentucky's finest export has started to change, with the company upping sticks and moving its headquarters to Texas in a bid to save money. KFC may be seeing some exciting changes in 2025 -- but it's also in freefall, and we think we know why. Read more: 4 Chain Restaurants With The Absolute Best Chicken Pot Pie And 4 With The Worst Perhaps the biggest sign of a restaurant struggling to keep its doors open is when those very doors start to shut. Unfortunately, for KFC, that's been happening pretty quickly. In the summer of 2024, several dozen KFC branches closed without prior warning across Illinois, Wisconsin, and Indiana. The closures were accompanied by a brief, cryptic message from KFC which seemed to lay the blame on EYM Chicken, the franchisee that owned and operated the restaurants. EYM Chicken's sibling company, EYM Pizza, had filed for bankruptcy protection shortly before shutting up shop on the KFC branches. Now, it's easy to see that EYM Chicken was in trouble here, but that doesn't account for closures of KFC restaurants elsewhere. In the UK, 13 KFC restaurants shut their doors in 2024, again pretty suddenly, leaving fans of its chicken heartbroken. This was once more pinned down to a franchising issue and stores changing hands between companies, but you do have to ask yourself why so many of these franchises are struggling -- and if there's a wider problem at play with KFC itself. Virtually everyone knows that KFC stands for Kentucky Fried Chicken. So you can reasonably assume that the restaurant chain not only has strong roots in Kentucky, but continues to operate out of the state, right? Well, that's soon not going to be the case. In February 2025, KFC announced that it was to be moving its headquarters from Kentucky to Texas, with the brand joining the other Yum! Brands favorite Pizza Hut, which is operated out of the state. In doing so, it would also relocate its core employees. Yum! Brands' chief executive officer David Gibbs stated that "these changes position us for sustainable growth and will help us better serve our customers, employees, franchisees and shareholders," as seen in The Guardian. However, the move has faced a lot of criticism, with Kentucky's governor even wading in to express that he thinks it's a bad look for KFC. So why are they moving the KFC headquarters in the first place? Tax. Texas has low corporate taxes, allowing businesses to thrive more effectively there. You have to ask yourself, though, whether KFC would be making such a bold move and selling out its very identity if it wasn't concerned about cash flow and surviving into the future. Although the overall picture for KFC has looked pretty good on paper over the last few years, it's worth taking a look at some of its most recent sales information. In a Q4 earnings report for 2024, it was revealed to investors and the public alike that KFC's sales in the U.S. had been on the decline by a substantial 5% from Q3. This downturn was chalked up to KFC facing stiff competition towards the end of the year from Popeyes, which has quickly become a force to be reckoned with (and KFC's biggest rival in the fried chicken market). Furthermore, this decline was building on previous declines in sales from the quarters throughout 2024, signalling long-term trouble for KFC. This drop in sales is particularly stark when you look at how Yum! Brands' other restaurants have been performing. Taco Bell's U.S. sales were up 5% for Q4, while its worldwide sales were up too. KFC's worldwide sales have also been on the increase, especially in China, but in the United States things aren't looking so great. Plus, the broader picture for Yum! Brands could be better -- while shares have increased by 11%, this was half of what the broader growth of the S&P 500 was in 2024. These may seem like small numbers, but they're pretty significant. As a franchised restaurant, when your franchisees are in trouble, you're in trouble. Unfortunately, franchising woes have been hitting KFC pretty hard in the last 12 months or so, and this could be putting a dent in the long-term prospects of the restaurant staying prominent. In late 2024, its biggest domestic franchisee KBP Brands announced that it was laying off more than two dozen corporate employees. The redundancies were announced as part of what KBP Foods called a restructure, and apparently came as a result of the company responding to the challenging current economy and inflation. Thankfully, KBP Foods managed to keep the majority of its employees across its entire business, but it lost 9% of its corporate team in total. Now, crucially, this isn't a decision made by KFC itself, but it does indicate that there might be some discontent brewing. Franchisees rely on the businesses they franchise to remain appealing to customers to stay in business, and if people are falling out of love with KFC itself, there's not a lot they can do. It might be a sign for KFC to think about how it can draw people back into its stores. KFC is a truly international franchise, with the quick service chain operating in more than 145 countries around the world. As such, it relies on its partnerships and franchisees in all of these countries to remain strong if it's going to keep selling its chicken -- and it doesn't seem like that's the case recently. In February 2025, it was announced that IS Gida, Turkey's franchise operator for KFC, had filed for bankruptcy, putting thousands of jobs on the line and resulting in hundreds of closures of KFC branches around the country. The bankruptcy claim came shortly after Yum! Brands severed all its ties with IS Gida, having claimed that it wasn't operating at the standards expected by the KFC owners. Although Yum! Brands said in a statement that it was committed to keeping KFC alive and well in Turkey, and reopening its restaurants in the country as soon as possible, it didn't give any indication of its short-term future. Given that Turkey has an approximate population of 87 million people, it's a massive market for the brand not to be operating in, and this will no doubt be reflected in its profits. You know how we know why KFC is struggling to stay in business? Because everything's so darn expensive these days -- and this formerly affordable restaurant just hasn't been able to keep up. As a result, it seems that it's jacked up its prices by a pretty wild amount, turning what should be an affordable meal into something that burns a hole in your wallet. In the last few years, customers have seen their meals increase by around 30 to 40%, with simple meals like a three-piece tenders combo coming in at almost $15 dollars before tax in some stores. Of course, this isn't entirely KFC's fault; things have gotten way more expensive in the last couple years, and the pandemic and subsequent cost of living crisis made chicken a lot pricier for the chain. As a result, inevitably it had to pass the cost onto its core customer base, but the amount that it's done so has made it clear how much it's struggling. This isn't just a U.S.-specific problem, either. In the UK, KFC prices have gone through the roof, with customers noticing that the correlation between how much they pay and how much chicken they actually get is way off. Restaurants rely on people to like not just their food, but their image. However, when fast food chains start to make questionable decisions about how they're marketing their meals, it's amazing how quickly people turn away from them, harming their profits in the process. This cause and effect can partly be seen in KFC's recent sales struggles, which can somewhat be pinned down to some bizarre marketing decisions in recent years. For example, one ad in 2024 harnessed the power of AI to create a series of terrifying multi-fingered hands, with the idea being that the more digits you have, the more fingers you have to lick after eating its chicken. The problem was that people hated the concept and just found the whole thing creepy. Another ad in 2023 was roundly criticized for playing into racist stereotypes when it was released in Canada. The campaign featured people eating KFC with their hands instead of cutlery (tying into the brand's "finger lickin' good" slogan), but it was noted that the designs only featured Black individuals, a move which was subsequently dubbed as insensitive and racist. InKroud founder and Olive managing partner Tyra Jones-Hurst said to Campaign Asia that the ads "dampened what should have been a cheeky and refreshing take on an old slogan into a classically harmful and stale stereotype for the Black community." Senior leadership changes are nothing new, but when they coincide with a downturn in sales, you know there's trouble going on. You can see this pretty clearly when it comes to KFC's recent renegotiation of its senior team. 2023 and 2024 saw KFC bringing in new leadership, with Catherine Tan-Gillespie joining as chief marketing officer and chief development officer and Thuthuka Nxumalo made chief operations officer in 2024. In 2023, Paul Tuscano and Jonathan Ojany joined as chief digital officer and chief financial officer respectively. These hires were part of what KFC U.S. president Tarun Lal called a "brand transformation," which is designed to give the restaurant a new lease of life (and, probably, a boost in sales). It seems, therefore, that KFC's previous leadership team could have been one of the reasons why KFC has been struggling lately, and these new additions are a chance for the company to reset and face a brighter future. There wouldn't be any reason to hire totally new people if everything had been going well, after all. For a brand that operates in most corners of the globe, KFC needs to try to remain uncontroversial if it's to stay appealing to everyone. However, it hasn't managed to do that, which has put a serious dent in its sales -- as well as its reputation. In Malaysia, KFC has been the subject of a longstanding boycott since October 2023, with a growing number of Malaysian citizens refusing to eat at the restaurant as a result of KFC's relationship with Israel. Although KFC was not on the official boycott list for BDS Malaysia, a group organising boycotts of Israel-associated companies, consumers have perceived it to be linked to the country, resulting in dramatically fewer visits to its stores. In May 2024, this culminated in dozens of KFC units across Malaysia having to shut their doors, and in total more than 100 had to close in just over six months. Although this was dubbed a temporary closure by KFC's operators in the country, it was still a huge blow to the brand, which it will likely not recover from for a while. Probably the biggest reason why KFC is struggling is because it's just not keeping up with the times. There are scores of fried chicken restaurants out there these days don't have the unhealthy items that KFC has, and while it lays a claim to being one of the oldest and certainly one of the most prominent, that won't last forever. "Chicken is a highly competitive space, more than it has ever been. You've got Chick-fil-A, Raising Cane's, and the up-and-coming brands like Dave's Hot Chicken," says head of analytical research RJ Hottovy, via Nation's Restaurant News. "It's a space I feel like people are looking for more variety and they're getting it elsewhere. There are more places for them to do so." KFC is facing especially stiff competition in the United States from Popeye's, which is on the rise with increasingly good sales in comparison to KFC's poor ones. Wingstop's business is also booming, threatening KFC's dominance in the chicken wing space. Although KFC has a strong hold on international markets, that also may soon be threatened, not just by Wingstop (which is thriving internationally) but also by brands like Jollibee. Shrinkflation is something we've all had to deal with in recent years, with the size of all of our favorite goods getting smaller while the price remains the same. Unfortunately for KFC, its attempts at shrinkflation haven't gone unnoticed, and have left people looking elsewhere for fried chicken portions that are a little more generous. Folks over on Reddit have flagged how wild the cases of shrinkflation at their local stores have gotten, with one person using their hand to demonstrate the tiny size of their tenders and drumsticks. Another person, also on Reddit, posted a picture of the size of their drumstick in comparison with the potato and gravy cup, showing how minuscule it was. Some people have theorized that KFC's chicken is getting so small because it buys it by weight, but sells it by the piece. This means that it gets more individual chickens for its money, and can therefore drive more profit. However, customers haven't been fooled, and judging by the store's sales in recent years, they're clearly now going to places that give them more bang for their buck. Who wants to go to a place where they don't feel welcome? That's likely one of the driving reasons why KFC has been struggling so much lately. It seems that KFC has dropped its standards when it comes to customer service pretty considerably, and while it's never been particularly well-known as being the best fast food experience out there, things seem pretty bad lately. Multiple people have flocked to social media services in recent times to talk about how bad the customer service at KFC has been for them, with people flagging issues like orders not being fulfilled because of lack of product (despite payment having gone through), or employees calling customers to insist they bring back orders that weren't meant for them. The latter was despite the customer being handed the wrong order in the first place, just FYI. Not a good look for KFC. It also suffers when you compare it to other fried chicken chains that have significantly better customer service. In a 2024 report from QSR Magazine which ranked fast food outlets by drive-thru experience, 95% of people rated Chick-fil-A as having friendly customer service, with 88% saying the same about Raising Cane's. KFC's customer service satisfaction rating sat at just 77%. You know what people come to fast food restaurants for? The food. So what happens when that food starts to not be as tasty as it used to be? Well, they stop going. This all sounds obvious, but it's really the key reason why KFC has been going through such a hard time. Simply put, its food has got worse, and its customers have been noticing. There are countless examples of people online pointing out the declining quality of KFC's food. "During my recent visit to KFC, I was prepared to satisfy my mashed potato cravings, but for some reason, there was something of an aftertaste, or it tasted synthetic, like it wasn't real food," said one person on Reddit. This was reinforced by a further comment, with someone stating that KFC food "hasn't been tasty for a long time. A lot of KFC's food isn't tasty anymore." Other people have noticed that KFC's pretty bad in the USA specifically, mentioning how much they've noticed the drop in quality when coming from other places. The problem seems to be that Kentucky Fried Chicken puts profit over people's actual enjoyment of its food. As a result, it shot itself in the foot, and people have stopped eating there. There might be some old KFC menu items you'd forgot about, but you're gonna wish you forgot about your last order too. Hungry for more? Sign up for the free Daily Meal newsletter for delicious recipes, cooking tips, kitchen hacks, and more, delivered straight to your inbox. 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Axios
18-03-2025
- Business
- Axios
Nvidia and Yum! Brands team up to expand AI ordering
Yum! Brands — the parent company of Taco Bell, KFC and Pizza Hut — is teaming up with technology giant Nvidia in a move that could accelerate the adoption of AI ordering in drive-thrus. Why it matters: The future of fast food is here with AI already taking orders at some restaurants' drive-thru lanes. Driving the news: Yum! — the world's largest restaurant company with more than 61,000 locations — and Nvidia announced an "industry-first collaboration" Tuesday. It's Nvidia's first AI restaurant partnership and the technology will power and scale the fast-food company's existing Byte by Yum! platform. The big picture: Artificial intelligence can help restaurants simplify and speed up the drive-thru experience, which could boost sales and cut costs. Andrew Sun, Nvidia's global director of retail, CPG and QSR business development, said working with Yum! they hope to "drive forward innovation for the industry by solving some of the hardest problems together." Zoom in: Joe Park, Yum! Brands' chief digital and technology officer, told Axios they've already "begun piloting AI solutions in select Taco Bell and Pizza Hut locations." Park said the companies plan to roll out AI solutions to about 500 restaurants across the four Yum! Brands, including Habit Burger & Grill, starting in the second quarter of the year. One focus is on "voice automated order taking" in the drive-thru or when calling into a call center for Pizza Hut, Park said, noting AI can also help count the number of cars on the drive-thru to alert restaurant employees. "If our restaurant knows that there are four or five cars in line, they can then possibly suggest different items to customers that have a quicker turnaround time so that we could speed up the line," Park said. Between the lines: Yum! also plans to use AI to improve order accuracy and to use AI-driven analytics to access restaurant performance. The Golden Arches ended its AI drive-thru ordering pilot last summer after a number of errors embarrassed the company on social media. McDonald's said that it saw "tremendous opportunity" in the IBM-powered technology and had "confidence that a voice ordering solution for drive-thru will be part of our restaurants' future."
USA Today
19-02-2025
- Business
- USA Today
KFC without the K? Fried chicken chain is leaving Kentucky. Here's what we know.
AI-assisted summary KFC and Pizza Hut employees will report to a new headquarters in Plano, Texas. Taco Bell and Habit Burger & Grill will remain headquartered in Irvine, California. Louisville, Kentucky, leaders expressed disappointment but are optimistic Yum! Brands will continue its partnership with the community. Kentucky Fried Chicken is about to leave its spiritual and physical home after its owner, Yum! Brands, said it will be leaving Kentucky. In a news release from the company on Tuesday, Yum! Brands said it will create two new brand headquarters in Plano, Texas, and Irvine, California. The famed chicken brand will not be the only property of Yum! Brands affected. Employees for Pizza Hut will also report to Plano alongside KFC employees. Corporate employees for Taco Bell and Habit Burger & Grill will remain headquartered in Irvine. 'These changes position us for sustainable growth and will help us better serve our customers, employees, franchisees and shareholders,' David Gibbs, Yum! Brands CEO said in a statement. 'Ultimately, bringing more of our people together on a consistent basis will maximize our unrivaled culture and talent as a competitive advantage. I'm confident this is another important step in growing our iconic restaurant brands globally.' 'Disappointed,' local Louisville leaders speak out According to the release, 100 KFC corporate employees will relocate to Texas over the next six months, with another 90 remote workers doing the same over the next year and a half. Need a break? Play the USA TODAY Daily Crossword Puzzle. In a statement to the Cincinnati Enquirer, part of the USA TODAY Network, Louisville Mayor Craig Greenberg said the move is disappointing. 'I am disappointed to learn that Yum! Brands will move its KFC employees to Texas — especially since the brand was born here and is synonymous with Kentucky,' Greenberg said. Sarah Davasher-Wisdom, president and CEO of Greater Louisville Inc., the region's chamber of commerce, also shared her thoughts. 'KFC is a Greater Louisville homegrown company that has become one of the largest restaurant chains in the world over the last 90 years,' she told the Enquirer. 'While GLI is disappointed to see the relocation of some employees from our region, we are optimistic that Yum! will continue its long-standing partnership with our community. Some bad news, some good Despite the news, Yum! Brands said it would be retaining the KFC Foundation and Yum! Brands corporate offices in Louisville. The company also said it would be announcing a $1 million endowment to the College of Business at the University of Louisville. 'I've asked to meet with the Yum! CEO soon and am heartened Yum! will retain its corporate headquarters and 560 employees here. I will work tirelessly with Yum!'s leadership to continue growing its presence in Louisville,' Greenberg continued. Contributing: Olivia Evans - The Cincinnati Enquirer Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at and follow him on X @fern_cerv_.
Yahoo
18-02-2025
- Business
- Yahoo
Yum!, KFC hint at new flagship restaurant, plans to move 100 jobs from Louisville
LOUISVILLE, Ky. (FOX 56) — Colonel Sanders is on the move. On Tuesday, Yum! Brands announced plans to designate two headquarters in the U.S., one in Plano, Texas, and one in Irvine, California. Yum! Brands will relocate around 100 corporate employees from Louisville to Texas. Lexington's historic Lyric Theatre preserves Black history, celebrates culture through artistic expression Yum!, KFC hint at new flagship restaurant, plans to move 100 jobs from Louisville How much snow could central Kentucky see following floods? The KFC Foundation and Yum! Brands will keep corporate offices in Louisville, and Taco Bell and Habit Burger & Grill will remain headquartered in Irvine, California. 'These changes position us for sustainable growth and will help us better serve our customers, employees, franchisees and shareholders,' said David Gibbs, Yum! Brands chief executive officer. 'Ultimately, bringing more of our people together on a consistent basis will maximize our unrivaled culture and talent as a competitive advantage. I'm confident this is another important step in growing our iconic restaurant brands globally.' According to a news release, the KFC U.S. corporate roles will transition to the Plano campus over the next six months, while 90 remote positions are expected to transition to their new campuses over the next 18 months. Lexington ranked 10th worst large city for football fans: WalletHub Kentucky receives failing grades in tobacco control report Kentucky ranks as 2025's worst state to retire in: WalletHub Yum! Brands said employees will receive relocation and transition support during the process. The company also announced a $1 million endowment to the College of Business at the University of Louisville to fund Yum!-sponsored scholarships for students throughout Kentucky and further support the Yum! Center for Global Franchise Excellence. 'To commemorate its deep-rooted history in Kentucky, Yum! is strengthening its commitment to advancing higher education locally,' read the statement in part. It wasn't all business though; Yum! included a promising sentence at the end of their release. Colonel Sanders: From service station food to KFC founder, billionaire 'Additionally, KFC will continue its brand presence in Louisville with the ambition of building a first-of-its-kind flagship restaurant,' the release concluded. In December, KFC launched Saucy a spinoff of the KFC formula located in Orlando. Saucy focuses on boneless chicken tenders and designer sauces, and broke away from KFC's southern roots with a flashy 'With Saucy, we've taken KFC's famous Original Recipe® and amplified it with a brand-new concept that lets consumers play with flavor,' Christophe Poirier, KFC's chief new concept officer, said in a previous statement. 'You can pick a combo, choose a flight of sauces or, my personal favorite, mix sauces and sides to create your perfect meal.' Kentucky's World Chicken Festival among top US food festivals It is unclear if the cryptic statement relates to Saucy, another spinoff restaurant, or something even bigger joining the Yum! roaster. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
