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Yum! Brands executives highlighted core profit gains and digital sales growth despite a challenging quarter. The focus on technology with over 50% digital sales drove optimism. AI initiatives, including voice AI at drive-thrus and consumer data insights, are expanding. Taco Bell’s success was attributed to brand buzz, value and menu expansion. The Habit Burger Grill generated 6%-unit growth during the quarter and improved margins by 60 basis points. Yum! Brands CEO David Gibbs highlighted that the two-year trends for Pizza Hut U.S. remain positive and that Yum! was excited about some of the work behind the scenes to reset KFC in the United States. That work includes pulling pages from KFC’s international business, which Gibbs said has a “great playbook.”
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| KFC and Cheetos have joined forces to unveil their latest culinary delight: Crunchin’ Cheese Fried Chicken. Teaming up with Chuck Studios, the brands present an 80-second live-action film featuring Colonel Sanders and Chester the Cheetah crafting the new recipe. The mouthwatering 30-second kitchen sequence showcases KFC’s signature fried chicken coated with Cheetos crisps. With Colonel Sanders and Chester leading the charge, the collaboration promises a tantalizing taste sensation officially branding themselves as #PartnersInCrunch. |
| The Emerging Experiences Report by QSR and Intouch Insight delved into how consumers engage with innovations, comparing in-store kiosk vs. live counter ordering, drive-thru mobile ordering vs. live ordering and mobile pickup at a window/locker vs. in-store. This report included: Taco Bell, Burger King, Shake Shack, Chipotle, Panera Bread, Wendy’s, Jack in the Box, Checkers & Rally’s, Whataburger and Zaxby’s. |
| Yum! Brands reports its first-quarter 2024 earnings |
Catch up on our company’s quarterly business performance by reading the press release or watching "Chat with David." If you’re short on time, check out the infographic for all of the details. Whichever method you choose, you’ll be informed! |  | (For Yum! Eyes Only) |
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| Chipotle CEO, Brian Niccol, expressed excitement about expanding across Canada after the company’s strong performance there. With low staff turnover and successful openings, Chipotle plans to focus on Toronto, Vancouver and Edmonton. Niccol noted Canada’s leadership in operational KPIs and Chipotle’s ability to cater to diverse income segments. While emphasizing the human experience, Niccol mentioned plans for a 50-for-1 stock split to make shares more accessible to team members. |
| Chipotle is honoring healthcare workers by giving away 100,000 free burrito e-cards totaling over $1 million in free food. Healthcare professionals can enter to win on a microsite from May 6 to May 10. Winners, randomly selected at the end of National Nurses Week will verify their status via ID.me to receive the e-card. Chipotle will also match 10% of Healthcare Heroes E-Gift Card purchases and donate to the American Nurses Foundation. |
| Domino’s is flipping the script on tipping culture with its new promotion, “You Tip, We Tip,” offering customers $3 off future orders for tipping $3 or more to delivery drivers. This move aims to engage consumers while addressing tip fatigue and potentially boosting sales. Additionally, it serves as a recruitment strategy for drivers, crucial for Domino’s delivery-centric business model. However, critics argue this tactic may shift the burden of paying workers onto customers rather than providing fair wages. |
| Starbucks CEO Laxman Narasimhan highlighted the growing popularity of mobile ordering, with over 30% of Starbucks orders made through the Starbucks Rewards app in the last quarter. However, a significant portion of these orders went uncompleted due to long wait times and product availability issues. To address this, Starbucks will introduce the Siren Craft System, simplifying order fulfillment procedures for baristas to increase throughput and improve product availability. |
| Wingstop reported robust domestic same-store sales growth of 21.6% in the first quarter outpacing competitors driven by transaction growth and consumer spending. CEO Michael Skipworth attributed this success to Wingstop’s indulgent offerings, raising the 2024 guidance to low double-digit same-store sales growth. With average unit volumes nearing $2 million, Wingstop aims to become a top ten global restaurant brand. The rollout of MyWingstop technology and increased digital sales, accounting for 68% of Q1 sales, further propels growth including partnerships with NFL and NBA. |
| Denny’s reports positive impact from California’s fast-food wage law noting improvements in employee retention despite industry concerns. CEO Kelli Valade highlighted progress in dine-in business and strong off-premises strategies. The company plans to expand its Banda Burrito concept in California offsetting wage law impacts. Denny’s also sees success with its Keke’s Breakfast Café expansion. Despite a 1.3% decline in U.S. same-store sales, the brand remains optimistic, implementing price increases and focusing on value offerings. |
| Arby’s has introduced snack-sized Chicken Wraps in three flavors: Ranch, BBQ and Honey Mustard available for a limited time. Priced at around $3 each or two for $5, they feature a crispy chicken tender, lettuce, cheddar cheese and sauce in a flour tortilla. This marks Arby’s first national snack wrap offering, complementing its existing Market Fresh Wraps. |
| Tom Krouse, CEO of Donatos Pizza since 2010, will retire in October, succeeded by Kevin King, the current president. Under Krouse’s leadership, Donatos doubled in size, with 178 traditional restaurants in 11 states and 290 non-traditional locations. King, with extensive industry experience, aims to continue growth and innovation. Donatos, known for its “edge-to-edge” pizzas, maintains a people-first culture. |
| Krispy Kreme is expanding into Germany through a partnership with ISH Kreme bringing its beloved doughnuts to Berlin. Raphael Duvivier, Krispy Kreme’s Chief Development Officer, highlighted Germany’s potential with over 3,000 access points. The brand’s fresh hand-crafted doughnuts will be made available through an omnichannel model, promising the same taste worldwide. With popular seasonal offerings like Valentine’s Day and Easter doughnuts, Krispy Kreme aims to spread joy to German consumers. |
| Johnny Rockets is celebrating Mental Health Awareness Month by offering a special promotion. Throughout May, customers can send a free shake to a loved one through JohnnyRockets.com/shareasmile and receive a classic Johnny Rockets shake for themselves. According to Taylor Fischer, VP of Marketing for FAT Brands’ Fast Casual Division, the initiative aligns with the brand’s commitment to bringing joy to customers. |
| Restaurant surcharges have become a contentious issue with the FTC proposing a ban on “junk fees”, including those from restaurants. While the federal rule is still in process, California and Illinois have introduced their own legislation. California’s SB 478 signed into law last fall includes restaurant fees and surcharges effective July 1. Illinois’ proposed Junk Fee Ban Act, passed in the State House, aims to ban hidden fees from various industries including restaurants. Critics argue such bans could increase costs for consumers and businesses alike, while proponents emphasize transparency and potential savings for customers. |
| The increase in California’s minimum wage has prompted fast-food chains to turn to AI to offset rising labor costs. Operators like Harshraj Ghai are accelerating plans for self-service kiosks and testing AI-driven drive-through systems. While AI adoption faces speech recognition challenges, it offers potential to streamline operations and enhance customer service. Major brands like McDonald’s and Carl’s Jr. are exploring AI to improve efficiency despite current limitations. Analysts anticipate AI advancements will revolutionize the drive-through experience, boosting sales and reducing labor overhead in the fast-food industry. |
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