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Yahoo! Finance
Yum China reports first quarter results
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Yum China reported Q1 results, with 6% system sales growth YoY, totaling $2.96 billion revenue, with $374 million operating profit. Total store count reached 15,022, opening 378 net new stores. Same-store sales reached 97% of the prior year’s level. KFC and Pizza Hut’s membership totaled 485 million, with member sales contributing 65% of system sales. Joey Wat, CEO of Yum China, commented, “We achieved solid sales growth in the first quarter with total revenues hitting an all-time high. Our core operating profit grew modestly from last year’s high base and EPS was up double digits excluding foreign currency.”
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The Standard
KFC to launch an ‘eau de BBQ’ perfume with scents of smoke, charcoal and marinating meat
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KFC U.K. and Ireland has introduced “No. 11 Eau de BBQ” perfume, evoking classic British barbecue scents with notes of smoke, wood, spices and marinated meat. The fragrance complements KFC’s new Ultimate BBQ burger. Priced at £11, the proceeds support the KFC Foundation. Brand manager Phoebe Syms described it as capturing the essence of the burger, appealing to die-hard KFC and BBQ fans alike.
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Dao Insights
From ‘crazy’ to ‘psychotic,’ KFC gives away gold with Chow Tai Seng
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KFC China has partnered with jeweler Chow Tai Seng to give away gold accessories worth 4 million RMB. The collaboration features 99 gold nuggets, 250 bracelets and 15,000 golden tickets, available through prize draws for specific set menus. The collaboration generated buzz on Weibo, blending entertainment with brand recognition for Chow Tai Seng.
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Jamaica Observer
KFC providing $700k in sponsorship for Child Month activities
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KFC Jamaica has renewed its sponsorship of the National Child Month Committee’s 2024 initiatives, supporting the theme “Stand Up! Speak Out! Protect the Rights of Our Children.” With a contribution of $700,000, including cash and meal donations for care packages, KFC continues its commitment to child welfare. Restaurants of Jamaica Brand Manager Andrei Roper reaffirmed KFC’s dedication to preserving children’s rights and providing a supportive environment for their growth.
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Parade
Taco Bell fans melting down as chain tests cool new menu item
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Taco Bell has introduced Churro Chillers, a frozen treat lineup perfect for warmer weather, available in Mexican Chocolate, Dulce de Leche Coffee, Wild Strawberry and Sweet Vanilla flavors. Initially limited to select locations in Dallas, TX, and Chicago, IL, fans can track them down via the Taco Bell app. The sweet shakes are filled with a blended sweet shake, topped with cold foam and churro crumbles.
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Yum! CEO David Gibbs shares how to ace a job interview
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Up for a promotion? Watch "#3Questions," featuring Taco Bell Talent Acquisition Director Sherron Hawkins, to learn how to land that conversation – especially during IDP season – which concert David and Sherron wish they could see and what one thing Sherron says Yum! should amp up even more.
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CNBC
McDonald’s earnings miss estimates as diners pull back, Middle East boycotts hit sales
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McDonald's reported mixed quarterly results, missing earnings estimates as same-store sales fell short, particularly in the Middle East due to boycotts related to the Israel-Palestine conflict. Higher menu prices boosted revenue but deterred low-income customers. While U.S. sales grew slightly, international markets, notably the Middle East, experienced declines. Despite challenges, some regions like Japan and Latin America saw growth.
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Wall Street Journal
McDonald’s Supersizes China Bet as Corporate America Pulls Back
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McDonald's is intensifying its presence in China, aiming to nearly double its restaurants to over 10,000 by 2028 with a $1.8 billion buyback of its business in the country. Facing competition from local rival Tastien, McDonald's is offering unique menu items and quirky promotions to appeal to Chinese consumers. Despite challenges, including geopolitical tensions and nationalist sentiments impacting other U.S. brands, McDonald's sees China as its fastest-growing market. The move reflects confidence in China's potential and the appeal of McDonald's consistency and convenience.
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CNBC
Burger King invests another $300 million to remodel restaurants
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Burger King plans to invest an additional $300 million in remodeling approximately 1,100 of its U.S. restaurants as part of a broader revitalization effort. This investment is part of a larger strategy initiated a year and a half ago, with the parent company committing $2.2 billion to rejuvenate Burger King's U.S. business. The renovations aim to give 85% to 90% of the chain's roughly 7,000 U.S. locations a modern design by 2028, featuring drive-thru pickup for mobile orders and self-order kiosks. Despite the costly nature of renovations, early results from remodeled locations show sales growth, encouraging the company to continue its investment.
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Bloomberg
Domino’s Pizza rises as U.S. sales gain across income groups
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Domino’s reported a 5.6% rise in U.S. same-store sales for the first quarter, surpassing expectations of a 3.9% gain. CEO Russell Weiner attributed the positive results to increased orders from both carryout and delivery customers across all income groups. The company’s stock rose 4% following the announcement. Domino’s ongoing growth initiatives, including enhanced advertising and revamped loyalty programs, have contributed to its recent success, marking the second consecutive quarter of exceeding analysts’ expectations for same-store sales.
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Restaurant Business
Subway slowed its closures last year, but not by much
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In 2023, Subway closed over 400 U.S. restaurants, bringing its total to 20,133, the lowest since 2005. Revenue increased by 10.3%, reaching $971.9 million, but 40% came from vendor contributions. Average unit sales rose by 4.3%, with $490,000 per location, still 25% below inflation-adjusted levels. Subway closed fewer stores than previous years, focusing on higher-volume locations. Sales of stores between franchisees increased, with over 10% changing hands.
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QSR Magazine
Bojangles appoints Steven Gold Vice President of Real Estate
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Bojangles has appointed Steven Gold as their new VP of Real Estate, bringing over 30 years of experience in development, including roles at Wendy’s and Logan’s Roadhouse. Gold’s expertise encompasses multi-unit program development and project management. He noted he aims to contribute to Bojangles’ growth and success by overseeing the brand’s real estate strategy and site selection management. Bojangles plans targeted expansion in new markets like Arizona, California and Texas.
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QSR Magazine
Cicis launches $5 Late-Night Deal for stores in the Carolinas
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Cicis Pizza is offering an exclusive late-night deal in the Carolinas from April 29 to June 9. After 8 pm, customers can purchase a 1-Topping large pizza for just $5 at participating stores. Jeff Hetsel, President of Cicis, emphasized their commitment to enhancing evening dining experiences. The offer is available at select locations in North and South Carolina, with customers able to order online using the code “5LATENIGHT” or mention the offer in-store.
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Fortune
Livable wages mean more expensive burgers as California fast-food chains hike menu prices
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When California’s minimum wage for fast-food workers rose to $20 per hour from $15.50, major chains warned customers of price hikes. Reports show prices increased significantly since April 1, with Chipotle and Chick-fil-A seeing 6-10% spikes. Research by Gordon Haskett revealed price hikes across multiple chains. California now pays the highest base salary for fast-food workers and has one of the highest minimum wages. While the pay raises benefit many workers, it also raised costs for businesses, prompting price increases.
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Bloomberg
USDA is testing ground beef after bird flu found in dairy cows
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The USDA has initiated beef testing for avian influenza in states where the virus was detected in dairy cows. Ground beef samples are being collected at retail outlets, along with beef muscle samples at government-approved slaughter facilities from condemned cattle. Cooking tests are also being conducted to assess the virus’s presence at different temperatures. This follows the FDA’s discovery of the bird flu virus in about one-fifth of commercial milk samples. Despite concerns, the USDA assures the safety of the meat supply, highlighting inspection processes and the effectiveness of pasteurization and cooking in eliminating the virus.
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QSR Magazine
Fatburger and Buffalo’s Express ready to debut in San Antonio
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FAT Brands has opened its first brick-and-mortar Fatburger and Buffalo’s Express location in San Antonio, in partnership with Brame Brands. Located at 1604 and Culebra, the restaurant offers a range of all-American cuisine, including made-to-order Fatburgers, chicken wings, Fat Fries and hand-scooped milkshakes. This marks a significant milestone for FAT Brands, with plans to aggressively expand in Texas, aiming for 100 units in partnership with Brame Brands. The menu features customizable Fatburgers with various toppings, along with other offerings like fries, turkey burgers, crispy chicken sandwiches and hand-breaded onion rings.
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Restaurant Business
Stoners are big fans of DoorDash and Little Caesars, data shows
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Consumer insights firm Numerator released data showing that cannabis users heavily contribute to the business of food delivery apps and fast-food restaurants. Based on surveys of nearly 6,000 THC and CBD users, the data reveals that cannabis consumers are significantly more likely to use services like DoorDash and Uber Eats, with daily users showing even higher usage rates. With about 18% of Americans using marijuana and a significant portion being daily consumers, restaurants targeting this demographic can expect continued business growth, as many users plan to maintain or increase their consumption habits.
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Nation’s Restaurant News
Wing Snob wants to compete with Wingstop one day
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Wing Snob, a Detroit-based wing-focused chain, has rapidly expanded, capitalizing on the pandemic-driven popularity of wings. Founded in 2017, it now boasts over 100 locations in its pipeline. Unlike dominant competitor Wingstop, Wing Snob’s strategy revolves around simplicity and a laser focus on wings. By partnering with multi-unit franchisees, maintaining a streamlined menu and adapting sauces to regional preferences, the chain has “carved a niche in the market.”
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Restaurant Business
NYC asks for input on a new menu-labeling requirement
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New York City is set to implement a new requirement for chain restaurants to label sugary beverages and select products with an icon depicting a spoonful of sugar starting December 1. The mandate applies to restaurants with at least 15 units nationwide and targets fountain-dispensed sodas, fruit drinks and blended coffee beverages. Prepackaged products with over 50 grams of sugar will also require labeling starting June 19. The move aims to address health concerns related to excessive sugar consumption, with public feedback sought until May 23.
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