In line with quarterly sales posted by Yum China Holdings Inc, the sales slightly fell below estimates, and this is attributed to the weak growth at Pizza Hut in a turnaround drive.
KFC, Pizza Hut, and Taco Bell operators that evolved from the Yum Brands Inc during the later part of last year said that sales rose by 3 percent in the second quarter in 2017. Pizza Hut’s sales were flat following the 4 percent jump at fried chicken chain KFC.
Yum tries to rev up growth
China’s largest fast food chain having over 7,685 outlets has been on reviving its stand in the market which has dropped since 2012 – caused by changes in consumer tastes, fear of food safety and the general decrease in economic abilities.
According to Consensus Metrix, a research company, the Pizza Hut division has been responsible for slowing growths in KFC until the recent Yum’s listing appeared below the estimated 1.5 percent same-store rise.
Speaking to analysts, the chief operating officer and President of Yum China, Joey Wat said that they noticed that there were units that needed to be fixed following the results that showed that the Pizza unit has been trying to meet up. She added, hat there’s much to do, but efforts are in place to ensure the needful is achieved.
The overall sales for the same-store went up to 2.4, all thanks to KFC. Yum China has been in work to make the unit bounce back by simplifying its menu and incorporating delivery and mobile payments. Recently, it acquired a controlling stake in Daojia, a local delivery food service.
Fast food chains value
The income of the fast food chain went up to $107 million from $77 million a year earlier; the management attributed this to significant tax reforms.
The total revenue went a little below the estimate by analysts – $1.60 billion to appear as $1.59, indicating a 0. Percent fall.