American fast food company Yum! Brands has reported that worldwide system sales, excluding foreign currency translation, grew 10% for the second quarter (Q2) ending 30 June 2019.
Yum! Brands has over 48,000 restaurants in more than 145 countries and territories. It operates brands including KFC, Pizza Hut and Taco Bell.
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The company reported 5% same-store sales growth, 5% GAAP operating profit growth to $471m and 18% core operating profit growth.
Total revenue was $1.31bn for the quarter, a 4% decrease year-over-year from $1.368bn in the previous year.
The company’s net income dropped to $289m from $321m.
Yum! Brands CEO Greg Creed said: “Second-quarter results maintained early year momentum and helped us to exceed our already high expectations for a strong first half of 2019.
“I’m especially pleased to report that we delivered 10% system sales growth in the quarter, supported by broad-based strength at KFC International and Taco Bell. Our commitment to being a more focused, more franchised, and more efficient growth company positions us well for long-term success.
“Through the lens of our four growth drivers, we continue to leverage our unprecedented scale and expand our capabilities with the goal of enhancing franchise economics, accelerating growth and maximising shareholder value.”
The operating margin of the KFC division increased by 8.6%, the Pizza Hut division increased by 4.1%, and the Taco Bell division increased by 2.4%.
The chain opened 312 new restaurants during the second quarter of 2019. It has also refranchised 607 restaurants, including 331 KFC, 221 Pizza Hut and 55 Taco Bell units.
