| Yum! Brands News | |
| | Competitor Intelligence | |
| | Industry Trends | |
| | Policy & Regulatory News | |
| | | |
Yum! Brands reported results for the first quarter ended March 31, 2024. Worldwide system sales, excluding foreign currency translation, grew 2%, with 6% unit growth and a 3% same-store sales decline. First-quarter GAAP operating profit declined 1% and first-quarter core operating profit grew 6%. Digital sales approached $8 billion, with record digital mix over 50%.
|
| Yum China highlighted plans of aggressive expansion, focusing on “untapped” areas with low-price strategies. The company said 30 percent of its 1,500 to 1,700 new outlets to be established this year would be located in lower-tier cities or strategic places such as transport hubs or tourist destinations. Its KFC brand is adopting a cost-effective “small-town mini model” for franchise stores. “Looking toward the future, we are absolutely confident in seizing China’s vast opportunities. We are expanding … through a multifaceted approach with flexible store formats, strategic franchising and a range of exciting products across price points,” CEO Joey Wat said in a statement after the company published its first-quarter earnings on Tuesday. |
| KFC Japan marks its 40th anniversary of celebrating Children’s Day with Samurai Colonels. Founder Colonel Sanders donned samurai armor, aligning with the Japanese tradition of decorating with samurai figures on March 5. This year, 892 KFC branches will showcase unique Samurai Colonels crafted by employees. Additionally, smaller branches will display Samurai Colonel figurines. To engage customers, KFC Japan is offering a chance to win digital gift cards by posting photos of Samurai Colonels on Twitter between May 1 and May 5. |
| Taco Bell U.S. is gearing up to launch seven exciting new menu items throughout 2024, according to a recent Instagram post by Snackolator. These items include Big Cheez-It Supreme and Tostada, Mountain Dew Baja Blast Gelato, Cinnabon Dulce de Leche Delights, Chicken Nuggets, Cheesy Street Chalupas and Chicken and Steak Enchilada Grilled Cheese Dipping Tacos. Fans are eagerly anticipating these releases, especially after the success of last year’s limited run of Baja Blast Gelato. Additionally, customers will have the chance to vote on bringing back either the Meximelt or Apple Empanadas. |
| Taco Bell has announced its digital deal schedule for in-app and third-party delivery orders until June 4, 2024. Highlights include $1 Cantina Chicken Soft Taco on April 30, $1 Large Nacho Fries on May 7, $1 Burrito Supreme on May 14, $1 Cheesy Chicken Crispanada on May 21 and $1 Cantina Chicken Crispy Taco on May 28. Each deal is limited to the first 20,000 Rewards Members at 2PM PST and restricted to one per person. |
 |
| McDonald’s plans to test a larger burger this year to satisfy customers’ desire for heartier patties, according to Chief Financial Officer Ian Borden. The burger, created by a team of chefs worldwide, aims to offer a more filling option. Initially, it will be introduced in select markets globally to gauge its appeal. This move aligns with McDonald’s broader growth strategy, emphasizing the core menu, particularly beef products. Amidst recent sluggish demand, the company aims to bolster affordability in the U.S. after disappointing comparable-sales growth in the last quarter. |
| During its Q1 earnings call, McDonald’s addressed ongoing challenges with consumer spending, noting a decline in traffic among various consumer segments. CEO Chris Kempczinski highlighted the importance of offering reliable everyday value in response to consumers’ increased discretion with spending. The company acknowledged the narrowing perception gap in value due to price increases and outlined plans to enhance affordability through a national value platform and learning from successful international models like Germany’s “McSmart” platform. |
| Burger King’s U.S. sales surpassed expectations in Q1, reflecting successful store renovations and customer-focused initiatives. Same-store sales in the U.S. and Canada grew 3.8%, exceeding analysts’ estimates. Parent company Restaurant Brands International Inc. also reported strong same-store sales. Burger King’s efforts include remodeling locations, enhancing customer service and acquiring its largest franchisee, Carrols Restaurant Group Inc., for $1 billion. |
| Starbucks reported weaker-than-expected quarterly earnings and revenue, with a surprising decline in same-store sales, leading to a 12% drop in shares. The coffee giant reduced its fiscal 2024 forecast, anticipating continued under performance in cafes. Same-store sales fell 4%, with traffic declining 6%. U.S. same-store sales decreased 3%, and international sales dropped 6%, notably in China. Starbucks plans to attract occasional customers with app ordering, explore overnight demand and expand successful products like lavender drinks. Despite difficulties, Starbucks aims for $2 billion business growth and expects $4 billion in supply-chain cost savings over four years. |
| Subway’s sale to Roark Capital concluded, marking the end of a prolonged and intricate process. CEO John Chidsey expressed enthusiasm for the future, emphasizing a commitment to enhancing food quality and guest experience. Despite the transition, Subway assures continuity in leadership and strategy. Following the passing of cofounders Fred DeLuca and Peter Buck, Subway faced challenges, leading to significant restructuring efforts, store closures and changes in business operations. While average unit volumes improved, closures persist. |
| Panera is joining the Derby Day festivities with a twist on fashion: the limited-edition “Bread Head” hat. Inspired by the bread bowl, this fascinator-style hat features a 3D-printed replica surrounded by colorful ostrich feathers. Priced at $21, it’s a nod to Panera’s menu transformation, offering more options under $10. Each purchase includes a $100 Panera gift card to try its new menu items. |
| Some of America’s largest companies, including McDonald’s, are warning that consumers, especially low-income ones, are feeling the pinch of rising prices. Despite a slowdown in inflation from its peak, consumers are still grappling with elevated costs, leading to more careful spending habits. This persistent inflation has dampened economic sentiment, with high prices remaining a top concern for consumers. Nonetheless, affordability remains a key focus for companies as they navigate this challenging economic environment. |
| Brinker International reported a 3.4% increase in comparable sales during its Q3 earnings call, with Chili’s leading the way with a 3.5% increase and Maggiano’s following with a 1.7% increase. Despite overall traffic declining by 1.8%, primarily due to a pullback on virtual brands, Chili’s outperformed the industry on both sales and traffic. CEO Kevin Hochman attributed this success to the chain’s focus on value and its marketing efforts, including a return to TV advertising. The company’s menu innovation, including the launch of a new chicken sandwich and a fajita platform later in the year, is expected to further drive momentum. |
| Slim Chickens celebrated a significant milestone in its international expansion by opening its first location in Berlin, Germany, as part of a 20-location development plan with Foodelity Group. Spearheaded by Foodelity Group, a sub-franchisee of Boparan Restaurant Group, which operates 51 stores in the U.K. and Turkey, the brand plans to open one new restaurant every month in the U.K. and has the first five sites in legal processes in Germany. With over 265 locations in the U.S., Turkey, and the U.K. and more than 1,200 locations in development, Slim Chickens continues its growth trajectory, targeting markets in Europe, the GCC, Asia and beyond. |
| IHOP has completed a two-year migration to a new cloud-based POS system with Tray, boosting efficiency and sales at its 1,500 restaurants. Trimmed table turn times and increased tip and check totals are among the benefits cited by IHOP’s CIO, Justin Skelton. Tray’s system integrates back-of-house technologies with online ordering and payment platforms, including server tablets, now used by over 10,000 servers to streamline operations. |
| Krispy Kreme is rolling out a new rewards program, making it easier and faster for members to earn and redeem free doughnuts and beverages. Starting April 30, all Rewards members, including new sign-ups until May 11, receive a free Original Glazed dozen. Current members get theirs on April 30. Plus, members enjoy a dozen days of deals, including free treats and coffee, until May 11. With 10 points earned per $1 spent, members can redeem for various items, from single doughnuts to coffees. |
| New York has set a precedent by mandating paid prenatal leave for expectant parents, requiring employers to offer up to 20 hours of paid leave starting January 1st. Additionally, businesses must provide up to 30 minutes of paid break time for nursing mothers starting June 18th, applicable to children up to 3 years old. However, the state will discontinue paid leave for COVID-19 quarantine effective July 31, 2025. These new benefits complement existing paid sick leave requirements, varying based on company size and net profits. |
|
|
