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Why Yum Brands is thriving despite the major industry challenges

 

Yum Brands reported Q1 results Wednesday morning, including positive domestic same-store sales results for KFC, Taco Bell and Pizza Hut. KFC’s sales were up 2%, while Taco Bell was up 9% and Pizza Hut jumped 8%. The Habit Burger Grill’s same-store sales were flat on the quarter.

The company’s development engine also continued to churn, with 746 gross units opened during the quarter and “lots of white space remaining,” according to CFO Chris Turner. But perhaps the boldest headlines from the company’s first quarter were its continued digital acceleration and menu innovation.  Yum’s digital mix is now at 45% globally and represents nearly $7 billion, which is a $1 billion increase versus last year. Taco Bell specifically experienced an 8-point improvement in its digital mix after launching delivery as a service through its mobile app, for instance.  

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