Yum Brands revenue hits $1.7bn in Q2

Yum Brands, which owns KFC, Taco Bell, Pizza Hut and Habit Burger Grill, has reported a 4% revenue growth to $1.7bn (£1.3bn) for the second quarter ended 30 June 2024. 

Worldwide system sales grew 3% including a 1% same-store sales decline. GAAP operating profit for the group increased 6% to $607m (£477m).

KFC revenues increased 5% to $717m (£563m) in Q2 and operating profit also increased 3% to $334m (£262m). However, system sales in the UK region declined 3% in the period. 

The fast food chain opened 598 new restaurants across 57 countries.

Taco Bell revenues increased 7% to $666m (£523m) and operating profit increased 10% to $250m (£196m). In the period, the chain opened 56 new restaurants across 11 countries. 

Meanwhile, Pizza Hut reported a 2% decline in revenues to $239m (£187m), but a 4% growth in operating profit to $94m (£73m). The division opened 236 new restaurants across 30 countries. 

Lastly, Habit Burger Grill saw system sales declining 1% with same-store sales declining 6%. The chain opened 4 new restaurants in the quarter. 

David Gibbs, CEO, said: “I’m incredibly pleased with how well our teams have managed through a challenging operating environment to deliver a 10% increase in core operating profit. Our twin growth engines of Taco Bell US and KFC International combined delivered 5% system sales led by 8% unit growth.

“Second-quarter results most clearly showcased the power of the Taco Bell brand thanks to unmatched, crave-worthy innovation and a successful menu expansion to a new platform offering, Cantina Chicken.” 

Gibbs added: “Based on our first half results, we continue to expect to deliver at least 8% core operating profit growth this year. Meanwhile, as we progress into the next phase of our technology and digital journey, we are laying the groundwork for another promising year in 2025 as evidenced by the expansion of drive-thru Voice AI technology at Taco Bell.”