Latest news with #YumBrands
Reuters
6 days ago
- Business
- Reuters
KFC India operator Devyani reports lower quarterly profit as costs rise
Aug 13 (Reuters) - Devyani International ( opens new tab, which operates Pizza Hut and KFC restaurants in India, reported a fall in first-quarter profit on Wednesday amid sluggish demand for fast food and higher costs. The Yum Brands (YUM.N), opens new tab franchisee posted a net profit of 36.9 million Indian rupees ($420,920.55) for the quarter ended June 30, compared with a profit of 301.06 million rupees a year earlier. ($1 = 87.6650 Indian rupees)
Yahoo
6 days ago
- Business
- Yahoo
Will Yum! Brands' (YUM) Q2 Revenue Growth Offset Ongoing Half-Year Profit Pressures?
Yum! Brands recently announced its second quarter 2025 earnings, reporting US$1.93 billion in revenue and US$374 million in net income, up from US$1.76 billion and US$367 million respectively a year earlier. An interesting detail is that while second quarter profits rose, net income for the first half of the year was lower at US$628 million compared to US$681 million for the same period last year, reflecting some ongoing pressure on half-year results. We'll examine how Yum! Brands' stronger second quarter revenue growth factors into its investment narrative, particularly around digital expansion. Find companies with promising cash flow potential yet trading below their fair value. Yum! Brands Investment Narrative Recap Owning Yum! Brands requires belief in its ability to turn steady global brand strength and ongoing digital investments into consistent revenue and earnings growth. The recent Q2 results showed stronger revenue and a slight uptick in profit, but the softer first-half net income suggests that while near-term digital expansion may help, ongoing consumer demand challenges in key markets remain the most significant risk, and these results haven't changed that risk in a material way. Among recent announcements, the launch of 'Byte by Yum!', an AI-driven platform for restaurant technology, directly supports Yum!'s digital growth focus. This effort is central to the company's investment thesis, as expanding digital sales channels and operational tech remain its clearest path to improving efficiency and maintaining competitiveness, though short-term cost pressures linked to these investments persist. Yet, despite stronger digital trends, continued sluggishness in certain markets means investors need to be especially aware of the ongoing risk if consumer preferences... Read the full narrative on Yum! Brands (it's free!) Yum! Brands' outlook anticipates $9.5 billion in revenue and $2.1 billion in earnings by 2028. This projection implies a 6.4% annual revenue growth rate and a $0.7 billion earnings increase from the current $1.4 billion. Uncover how Yum! Brands' forecasts yield a $159.91 fair value, a 13% upside to its current price. Exploring Other Perspectives Four community members on Simply Wall St estimate fair values for Yum! Brands ranging from US$124.80 up to US$10,723,781.76. With doubts lingering around sustained demand in key markets, you may want to compare differing views on future growth and risk before making up your mind. Explore 4 other fair value estimates on Yum! Brands - why the stock might be worth 12% less than the current price! Build Your Own Yum! Brands Narrative Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd. A great starting point for your Yum! Brands research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision. Our free Yum! Brands research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Yum! Brands' overall financial health at a glance. Seeking Other Investments? These stocks are moving-our analysis flagged them today. Act fast before the price catches up: The end of cancer? These 26 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit. These 14 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include YUM. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ 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
6 days ago
- Business
- Yahoo
Fast food brands fire up AI despite challenging backdrop
This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Fast food companies continue to ramp up AI projects and invest in technology as headwinds threaten momentum. The restaurant industry had a rough financial start to 2025, with most companies experiencing sales dips and drops in traffic. In a challenging macroeconomic environment, AI has become an alluring addition to operations. McDonald's, Chipotle and Yum Brands are embedding the technology into workflows to streamline processes, save costs and improve customer and employee experiences. As part of a Google Cloud partnership that started in 2023, McDonald's has deployed edge computing in hundreds of U.S. restaurants and is beginning to extend it internationally. 'Edge is the digital foundation for the next generation of restaurant innovation that powers AI and internet of things-enabled restaurants,' CEO Chris Kempczinski said during the quick service restaurant's Q2 2025 earnings call Wednesday. 'The expected benefits are many: increased restaurant uptime and enhanced customer and crew experience, improved food quality and cost savings opportunities.' McDonald's is also working to add AI in restaurants to predict when equipment is in need of servicing and alert shift managers. While still in the early stages, Kempczinski said he expects capabilities to roll out in the next couple of years. 'It's going to improve the restaurant experience for the crew person, and it needs to be able to deliver cost savings [and] productivity to the franchisee to ultimately enable the investment that goes behind these things,' Kempczinski said. Internally, the company is updating internal systems, such as those within HR and finance. 'All of those things are coming to the fore,' Kempczinski said. 'We're probably most advanced on the consumer side, [but] I think you're going to see the restaurant and company platform benefits emerge over the next couple of years.' McDonald's saw its U.S. sales increase by 2.5% during the period, which ended June 30, a change in momentum following a two-quarter slide. 'At McDonald's, digital isn't just a buzzword — it's the engine powering how we scale smarter, serve better and move faster to grow our business,' EVP and Global CIO Brian Rice said in an Aug. 6 LinkedIn post. 'I was thrilled to hear our CEO Chris Kempczinski say just that in today's earnings call, highlighting the work of teams across the business.' Yum Brands touted its technology projects in its recent earnings call, too. The Taco Bell, Pizza Hut and KFC parent company credited AI with adding a 'massive' strategic advantage in personalized advertising and marketing, as well as accelerating the business' innovation timeline via developer tools, executives said during the call last week. 'We are always looking to raise the bar,' Chief Financial and Franchise Officer Christopher Lee Turner said. 'We have exciting plans for the next six months, including expanding our internally developed voice AI solution developed on the Nvidia stack to our first drive-thru restaurant in Q3.' AI is already informing decisions and shaping routines across more than 30,000 of Yum Brands' restaurants via its proprietary technology platform Byte, which leverages technology the company recently acquired. 'We're focused on simplifying the restaurant team member experience through solutions like Byte Kitchen and Fleet, Byte Coach and Byte Inventory,' Turner said. 'The significant adoption of Byte Coach [an AI assistant] across our system provides us with a scalable platform to deliver AI recommendations that take the guesswork out of running a restaurant.' Yum saw same-store sales rise 4% for Taco Bell, but KFC and Pizza Hut had 5% same-store sales slumps. The Habit Burger Grill, which Yum Brands acquired in 2020, experienced a same-store sales decline of 4%. Chipotle also felt the weight of a challenging environment, but executives are still prioritizing technology investments. The restaurant reported a 4% dip in same-store sales in Q2, after experiencing a decline in Q1. The second quarter, which ended June 30, marked one of the brand's worst for comparable sales growth since 2020, Restaurant Dive reported. 'While we experienced a slowdown in our underlying trend in May, we did see momentum build as we rolled out our summer marketing initiatives and leaned into hospitality,' CEO Scott Boatwright said during the Q2 2025 report. The company sees AI as a lever to bring better experiences and improve customer engagement. Chipotle saw about a 46% uplift in platform engagement after deploying an AI assistant to customers, according to Boatwright. 'We also recently opened a new restaurant innovation space, where we have a team working on emergent technology that rethinks our tools and processes holistically rather than as bolt-on additions,' Boatwright said. 'We aim to identify the ideal technology and operating model to enhance culinary standards, improve the team and guest experience and drive higher returns in our restaurants.' Recommended Reading JPMorgan ramps up prompt engineering training, AI projects
Time of India
08-08-2025
- Business
- Time of India
Restaurant Brands beats quarterly sales estimates on improving fast-food demand
Restaurant Brands beat quarterly revenue estimates on Thursday, as its marketing efforts boosted demand at Burger King and other brands in the U.S. and international markets. However, higher expenses drove an earnings miss, and sent the company's U.S.-listed shares down about 3% in early trading. The company leaned on movies such as 'How to train your Dragon' and partnerships with actor Ryan Reynolds, to attract customers in core regions such as the U.S. and Canada. Value-meal deals starting at $5, also introduced by major fast-food chains Yum Brands and McDonald's as consumer spending in the U.S. sees a decline, boosted foot traffic at Burger King. The Trump administration's unpredictable trade policies have disrupted business operations and shaken consumers, especially lower-income groups, who are increasingly seeking bargains and scaling back on dining out plans as they grapple with rising prices. "We saw a bit softer performance in some of the lower-income cohorts in the U.S., and a little bit of better performance in the middle and higher income groups," Restaurant Brands CEO Josh Kobza told Reuters. The company logged an adjusted profit of 94 cents per share, above 86 cents a year ago, but missed analysts' estimates of 97 cents per share, also hurt by higher costs from supply chain and commodities such as beef and coffee. It posted revenue of $2.41 billion in the quarter ended June 30, beating analysts' estimates of $2.32 billion, according to data compiled by LSEG. Quarterly same-store sales at Burger King outlets in the U.S., rose 1.5%, after rising just 0.1% a year ago. Comparable sales in the company's international segments, which include restaurant chains such as Burger King and Popeyes, rose 4.2%, compared with a 2.6% rise a year ago.
Yahoo
07-08-2025
- 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
