How Yum Brands is facing an uncertain economic environment
May 12, 2023
For the first time in several quarters, Taco Bell wasn’t hogging the Yum Brands earnings spotlight, making some room in Q1 for its sister brand Pizza Hut, which generated an 8% domestic same-store sales increase.
This is a wildly different story from a year ago, when Pizza Hut’s domestic sales plunged by 6% as the chain lapped a strong, pizza-fueled Covid environment from 2021 and struggled with delivery driver shortages that hindered the entire segment.
KFC also got a sliver of that spotlight, reporting a 2% same-store sales increase on the quarter. Like Pizza Hut, KFC got a lift from the expansion of its menu to appeal to more guests, as well as a barbell pricing approach. Specifically, KFC’s new chicken wraps were introduced in the quarter as part of a two-for-$5 promotion and that deal strongly resonated with lower-income consumers.
For more, we turn to executive editor Alicia Kelso.
