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Tag: Yum! Brands Inc

  • Yum Manufacturers profits pass over estimates as China weighs on KFC, Pizza Hut gross sales

    Automobiles wait in line on the pressure via lane of a Yum! Manufacturers Inc. Kentucky Fried Hen (KFC) and Taco Bell eating place in Lockport, Illinois, U.S.

    Daniel Acker | Bloomberg | Getty Pictures

    Yum Manufacturers on Wednesday reported quarterly profits and earnings that overlooked analysts’ expectancies as lockdowns in China weighed on gross sales.

    The corporate additionally mentioned it will pass over its long-term goal for running earnings this 12 months because of postponing its Russian industry.

    Here is what the corporate reported when compared with what Wall Side road was once anticipating, in line with a survey of analysts by way of Refinitiv:

    Income in step with percentage: $1.05 adjusted vs. $1.07 expectedRevenue: $1.55 billion vs. $1.59 billion anticipated

    World same-store gross sales rose 3% within the quarter.

    Yum’s KFC chain reported same-store gross sales expansion of three% all over the duration, however the corporation mentioned, except China, same-store gross sales in fact climbed 10%. China is KFC’s biggest marketplace by way of system-wide gross sales. Wall Side road was once expecting same-store gross sales expansion of four.4%, in step with StreetAccount estimates.

    Likewise, China additionally weighed on Pizza Hut’s effects. The marketplace is the pizza chain’s 2d biggest. It reported flat same-store gross sales expansion in international markets, together with the USA. In the meantime, global markets noticed same-store gross sales upward thrust 5%, however except China the metric climbed 10%.

    CFO Chris Turner mentioned it is unclear when call for in China will leap again.

    Pizza Hut’s U.S. gross sales have been additionally underneath power. The chain mentioned same-store gross sales declined 6% in its house marketplace.

    “We nonetheless see robust call for within the Pizza Hut U.S. industry, however it is basically a problem of with the ability to fill it with the hard work demanding situations round drivers,” Turner mentioned at the corporation’s convention name with analysts.

    Taco Bell was once the one chain in Yum’s portfolio to file better-than-expected same-store gross sales expansion, at 5% as opposed to an anticipated 2.7%.

    Yum opened 628 internet new places all over the quarter, maximum of that have been KFC eating places, whilst virtual orders accounted for greater than 40% of transactions and $6 billion in system-wide gross sales.

    Web gross sales rose 4% to $1.55 billion, falling in need of expectancies of $1.59 billion.

    The corporate reported first-quarter internet source of revenue of $399 million, or $1.36 in step with percentage, up from $326 million, or $1.07 in step with percentage, a 12 months previous.

    With the exception of refranchising positive aspects, earnings from Russian operations and different pieces, the corporate earned $1.05 cents in step with percentage, lacking the $1.07 in step with percentage anticipated by way of analysts surveyed by way of Refinitiv.

    Yum pledged to donate internet earnings from its Russian industry to humanitarian efforts after the Kremlin invaded Ukraine. It additionally quickly closed company-owned KFC places in Russia and is finalizing an settlement with its Russian franchisee to droop Pizza Hut operations there. Russia accounted for roughly 2% of Yum’s system-wide gross sales in 2021, and it was once a key marketplace for new eating place construction.

    Because of its exclusion of Russian earnings, Yum mentioned it will fall in need of its long-term goal to generate prime single-digit expansion for its core running earnings. As an alternative, for 2022, it is now expecting expansion within the mid-single digits.

    Learn the entire profits file right here.

    That is breaking information. Please test again for updates.

  • McDonald’s closures in Russia value the fast-food large $127 million in Q1 — here is what it will imply for the rustic

    Two months after the autumn of the Berlin Wall in 1989, McDonald’s — the very image of Western capitalism — opened its first retailer within the Soviet Union. It was once a large second, and the eating place drew massive crowds.

    Greater than 30 years later, amid drive from U.S. shoppers to protest Russia’s invasion of Ukraine, McDonald’s remaining month introduced it could be briefly final all 850 of its places in Russia.

    Starbucks, PepsiCo and Coca-Cola likewise introduced their plans to pause trade process in Russia, and Yum Manufacturers, which franchises about 1,000 KFC eating places and 50 Pizza Hut places in Russia, suspended all funding and eating place building within the nation. 

    Greater than 750 corporations have since curtailed operations in Russia.

    McDonald’s has additionally briefly shuttered its 108 places in Ukraine for protection causes. Russia and Ukraine in combination account for kind of 2% of McDonald’s international gross sales and not more than 3% of its working source of revenue.

    There is not any telling when or if McDonald’s will resume its operations in Russia and Ukraine, however the corporate is taking a success to its final analysis. The corporate introduced all over its first-quarter income that the closures value McDonald’s $27 million in rentals, provider prices, and worker wages, and every other $100 million in unsold stock. Altogether, the ones bills dragged its income down via 13 cents consistent with proportion within the first quarter.

    Within the intervening time, the fast-food chain has dedicated to proceed paying its workers in each nations.

    Watch the video to be told extra concerning the have an effect on of McDonald’s leaving Russia.

  • Burger King halts company reinforce for its 800-plus franchised places in Russia

    A person holds foods from the Burger King eating place on Might, 15, 2020 in Dedovsk, Russia.

    Mikhail Svetlov | Getty Pictures

    Burger King introduced Thursday it has halted company reinforce for its 800-plus franchised eating places in Russia.

    The Eating place Manufacturers Global chain mentioned it’s going to refuse approvals for any funding or enlargement. The suspension additionally comprises pausing operations, advertising and marketing and its provide chain.

    Burger King’s announcement comes after a flurry of alternative U.S. fast-food chains — together with its rival McDonald’s — suspended their company reinforce to their Russian places previous this week because the Kremlin’s forces persisted assaults on Ukraine.

    McDonald’s has the most important publicity to Russia because the majority of its eating places there are owned via the corporate. CFO Kevin Ozan mentioned Wednesday that the corporate is these days estimating that quickly shuttering its Russian places and pausing operations will price it $50 million per thirty days.

    Different U.S. eating place corporations may not be as harm via their symbolic step backs. Eating place Manufacturers, for instance, receives not up to 1% of its overall income from Russia, in line with FactSet. Starbucks, Yum Manufacturers and Papa John’s have all introduced plans to pause Russian operations, however maximum of the ones chains’ places within the nation are run via native franchisees.

    Eating place Manufacturers had in the past dedicated to redirect any earnings from Russian-franchised places to humanitarian assist for Ukrainian refugees.

  • Chipotle Mexican Grill to unlock pollo asado as newest limited-time menu merchandise

    Chipotle Mexican Grill releases pollo asado for a restricted time.

    Supply Chipotle Mexican Grill

    Chipotle Mexican Grill introduced Thursday it’s launching pollo asado because it newest limited-time menu merchandise within the U.S. and Canada.

    The pollo asado is made with grilled hen, garlic, contemporary lime, guajillo peppers and hand-chopped cilantro.

    It marks the primary time since its founding that Chipotle has launched every other hen choice. Its present adobo hen is the most affordable meat on its menu and its top-selling protein choice.

    “Hen is definitely our most well liked protein, with a lot of our maximum dependable Chipotle shoppers ordering it nearly all of the time,” Leader Advertising Officer Chris Brandt mentioned in a commentary.

    An entree with pollo asado will promote for a mean value of $9.11 within the U.S., 65 cents costlier than the usual hen choice.

    The burrito chain examined the pollo asado at dozens of eating places in Cincinnati and Sacramento beginning in November. Chipotle mentioned comments and gross sales for the check have been on pair with the ones for its smoked brisket, the chain’s bestselling new menu merchandise in fresh historical past.

    The smoked brisket and pollo asado launches are a part of the corporate’s broader menu technique.

    The chain is understood for its somewhat brief menu, however underneath CEO Brian Niccol, it’s been branching out with limited-time pieces that draw shoppers to its eating places. Ahead of main Chipotle, Niccol was once leader government of Taco Bell, which is owned by way of Yum Manufacturers and identified for its numerous menu with many rotating choices.

    Stocks of Chipotle have fallen 2% within the closing one year, dragging its marketplace price right down to $38.9 billion. Whilst its gross sales enlargement has been sturdy, investor fears about inflation and broader marketplace volatility have weighed on its efficiency.

  • McDonald’s says Russian shutdown will value the fast-food chain $50 million a month

    A McDonald’s eating place in St. Petersburg, Russia.

    Peter Kovalev | TASS | Getty Photographs

    McDonald’s CFO Kevin Ozan mentioned on the UBS International Client and Retail Convention on Wednesday that the corporate continues to be calculating the affect on its trade. Alternatively, McDonald’s recently estimates that it’s going to value about $50 million per 30 days, or more or less 5 cents to six cents in line with percentage. For comparability, McDonald’s reported fourth-quarter web source of revenue of $1.64 billion and income in line with percentage of $2.18.

    The corporate has dedicated to paying all of its roughly 62,000 Russian staff all the way through the pause in eating place operations. Ozan mentioned McDonald’s can be paying rentals for its places, in addition to provide chain prices and different bills.

    “We predict this to be transient and we no doubt do not take this determination evenly, however for us that is about doing what we expect is the appropriate factor to do, each for the worldwide trade and for our folks in the neighborhood,” he mentioned.

    McDonald’s has lengthy performed a symbolic position in Russia. The chain opened its first location within the Soviet Union 32 years in the past in Moscow, months sooner than the state collapsed.

    Along with last its Russian places briefly, McDonald’s has additionally shuttered 108 eating places in Ukraine in the meanwhile. Russia and Ukraine in combination account for more or less 2% of McDonald’s systemwide gross sales, 9% of its earnings and three% of its running source of revenue.

    Starbucks mentioned Tuesday that it will pause all Russia trade task and that its licensee there had agreed to shutter all of its cafes briefly. Like McDonald’s, the espresso chain will stay paying its 2,000 Russian staff whilst its cafes are closed. Starbucks CEO Kevin Johnson on Friday condemned Russia’s invasion.

    Yum introduced it’s postponing all operations for its company-owned KFC places in Russia and is finalizing an settlement with its Russian grasp franchisee to pause all Pizza Hut eating place operations there. It had already mentioned it will droop Russian funding and new eating place building. The vast majority of Yum’s more or less 1,050 Russian places are operated through franchisees.

    And Papa John’s mentioned Wednesday it has suspended all company operations in Russia, the place a grasp franchisee controls operations and owns the provision chain for eating places. The pizza chain is not recently receiving any royalties from the ones franchised places.

  • McDonald’s will briefly shut 850 eating places in Russia, just about 2 weeks after Putin invaded Ukraine

    McDonald’s introduced Tuesday it’ll briefly shut 850 places in Russia, just about two weeks after Russian forces invaded Ukraine.

    CEO Chris Kempczinski wrote in a letter to franchisees and workers that the chain will pause all operations in Russia. Then again, it’ll proceed to pay its 62,000 Russian workers, and its Ronald McDonald Space Charities will proceed to function.

    In contemporary days, the fast-food large has drawn complaint for staying silent at the battle, given its rather massive Russian footprint. McDonald’s eating places in Russia and Ukraine account for two% of its systemwide gross sales, more or less 9% of its earnings and three% of its working source of revenue.

    McDonald’s has lengthy performed a symbolic function in Russia as neatly. The chain opened its first location within the Soviet Union 32 years in the past in Moscow, months sooner than the state collapsed.

    About 84% of McDonald’s Russian places are owned through the corporate, whilst the remaining are operated through franchisees. Proudly owning extra of its eating places generates higher earnings for the corporate, however opens it as much as higher possibility in instances of turmoil or financial downturn.

    McDonald’s announcement comes after Yum Manufacturers mentioned it will droop eating place construction and funding in Russia.

    That is breaking information. Please take a look at again for updates.

  • McDonald’s, quiet at the Ukraine conflict, has extra publicity to Russia than different U.S. fast-food chains

    A McDonald’s eating place in Moscow.

    Andrey Rudakov | Bloomberg | Getty Pictures

    U.S. fast-food chains have restricted publicity to Russia and Ukraine, however McDonald’s is underneath essentially the most drive, in step with a brand new record from Financial institution of The united states Securities.

    McDonald’s, which owns a big majority of its eating places in Russia, has been quiet concerning the Russian invasion of Ukraine. The corporate declined to remark to CNBC on Monday.

    Different eating place corporations have have shyed away from better publicity to Russia and Ukraine as a result of maximum — or all — in their places within the international locations are operated by means of franchisees. Whilst the ones eating places generate much less earnings for the franchisor, it additionally signifies that an important financial downturn in both nation is much less prone to dent the corporate’s general effects. Moderately than face shopper or govt backlash from both sides of the warfare, each the franchisor and franchised eating places can level to their native possession, even supposing the chain is founded within the U.S.

    Since opening its first location within the Soviet Union 32 years in the past, McDonald’s has grown its footprint in Russia and Ukraine to greater than 900 places. The ones eating places account for two% of its systemwide gross sales, kind of 9% of its earnings and three% of its working source of revenue.

    The Chicago-based corporate has gotten smaller its possession from 100% to kind of 84% of eating places in Russia because the Kremlin invaded Crimea.

    “In 2014, after Russia was once hit with sanctions according to its Crimea invasion, there was once a perceived adverse response on the nation degree towards American corporations, together with McDonald’s whose Moscow eating places it closed for ‘sanitary violations,’” Financial institution of The united states Securities analyst Sara Senatore wrote in a observe to purchasers Monday.

    Franchisees perform the remainder of McDonald’s Russian footprint.

    In keeping with Senatore, a larger risk to McDonald’s trade is whether or not the warfare spills over into the remainder of Europe. The Continent accounts for just about 1 / 4 of McDonald’s systemwide gross sales. Senatore estimates that the area may just generate kind of a 3rd of its working benefit.

    Starbucks, however, generates most effective about 5% of its systemwide gross sales from Europe, in step with Senatore. The espresso large hasn’t paused operations in Russia, the place all of its cafes are run by means of franchisees. CEO Kevin Johnson condemned the Russian assault on Ukraine and vowed to donate royalties from its Russian trade to humanitarian reasons in Ukraine.

    Yum Manufacturers, which owns Taco Bell, KFC and Pizza Hut, has greater than 1,000 eating places in Russia that account for kind of 2% of its systemwide gross sales. Alternatively, nearly all of the ones places are franchised, so the earnings that Yum receives via licensing charges is way smaller.

    “Like such a lot of internationally, we’re surprised and saddened by means of the tragic occasions unfolding in Ukraine, and we are targeted at the protection of our staff, franchisees and companions within the area,” Yum mentioned in a remark to CNBC.

    The corporate added that it’s too early to talk about the affect however it’s tracking the placement very carefully. Its basis is donating $1 million to the Pink Go and matching worker donations to quite a few charitable reduction organizations.

    Domino’s Pizza and Burger King proprietor Eating place Manufacturers Global even have eating places in Russia and Ukraine, despite the fact that all of the ones places are operated by means of franchisees, in step with Senatore.

  • Taco Bell speeds up global enlargement as chain targets for $20 billion in annual gross sales

    Folks devour at a newly-opened Taco Bell eating place in Beijing on August 21, 2020.

    Greg Baker | AFP | Getty Pictures

    Taco Bell is accelerating its enlargement outdoor the U.S., opening 25% of its global eating places in simply the ultimate two years.

    The Yum Manufacturers chain introduced Tuesday that it opened its one centesimal eating place in Spain. The chain mentioned it is on the right track to construct 1,000 global gadgets, even supposing it didn’t proportion a timeline to achieve that function. On the finish of 2020, about 8% of Taco Bell’s 7,427 eating places had been positioned outdoor the U.S.

    In its house marketplace, Taco Bell has constructed a powerful following of dependable enthusiasts, who even get married at its Las Vegas location. Lovers come with vegetarians, whose vocal sadness in menu cuts helped deliver again its potato choices ultimate 12 months. Nonetheless, the chain’s U.S. industry took longer than Yum’s different two huge manufacturers, KFC and Pizza Hut, to dance again from the pandemic. The lack of late-night and morning call for harm Taco Bell gross sales.

    Whilst Yum stories systemwide gross sales enlargement by way of nation for Pizza Hut and KFC, the corporate does not escape the ones effects for Taco Bell. Within the fourth quarter, Taco Bell reported same-store gross sales enlargement of 8% throughout all of its places.

    “We’re on the right track to at least one,000 shops, and that’s inside our attractions inside the very close to long run,” mentioned Julie Felss Masino, Taco Bell’s global president, in an interview.

    She added that Taco Bell CEO Mark King has set a function for the chain to look $20 billion in annual income, and global enlargement is crucial part to achieving that focus on.

    Felss Masino changed into head of Taco Bell’s global industry in January 2020, after two years operating the chain’s U.S. operations within the wake of Brian Niccol’s departure to Chipotle Mexican Grill. Underneath her management, Taco Bell’s global department has fascinated about a number of key markets: Spain, the UK, India, and Australia and New Zealand.

    Taco Bell’s global technique contains making a bet on electronic orders. Within the U.Ok., 60% of transactions come from on-line consumers. The chain has been opening digital-only places and eating places with pick-up home windows devoted to supply drivers.

    “That is what being a very easy, out there logo is all about, and that’s the reason a cornerstone of ways we are rising the world over,” Felss Masino mentioned.

    Not like its U.S. industry, all of Taco Bell’s global places are run by way of franchisees. A few of the ones operators were part of Yum for many years, operating KFC or Pizza Hut eating places of their nations.

    “We have now been running with our franchise companions to get to scale in no time,” Felss Masino mentioned. “Scale is helping the shoppers since the logo feels larger, it is one thing they need to be part of. On occasion we will do extra issues available in the market with advertising and marketing.”

    Felss Masino additionally mentioned Yum’s scale and experience has helped Taco Bell because it speeds up its global enlargement. Yum is the most important eating place corporate on this planet by way of selection of places. In 2021, Yum opened greater than 4,100 places international — that is upper than the selection of Tim Hortons places in Canada.

    Stocks of Yum have risen 14% over the past twelve months, giving the corporate a marketplace price of $35.5 billion.

  • Small cities gas Chipotle Mexican Grill’s formidable North American enlargement plans

    Small cities like giant burritos, and it is fueling Chipotle Mexican Grill’s construction technique in North The united states.

    On Tuesday, the eating place chain advised buyers that it is increasing the long-term purpose for its North American footprint from 6,000 places to 7,000, in large part because of its good fortune in smaller cities. For comparability, McDonald’s has 13,443 eating places within the U.S. on my own, despite the fact that the vast majority are operated through franchisees. On the finish of 2021, Chipotle had 2,966 eating places international  — the majority of which might be corporate owned and within the U.S.

    Stocks of Chipotle have been up just about 9% in morning buying and selling Wednesday after the corporate crowned Wall Boulevard’s income estimates and shared its new construction goals.

    “We anticipated accelerating unit expansion within the coming years, however the magnitude is bigger than we expected,” BMO Capital Markets analyst Andrew Strelzik wrote in a observe to purchasers. “The upper go back small marketplace alternative is attention-grabbing as we’ve noticed an identical dynamics paintings neatly for others within the house.”

    A lady dressed in a facemas exits a Chipotle Mexican Grill eating place along with her takeout order on January 14, 2021 in Monterey Park, California.

    Frederic J. Brown | AFP | Getty Pictures

    In 2022, the chain is making plans on opening 235 to 250 new places. Beginning in 2023, it thinks it may boost up its tempo of recent gadgets to a variety of 8% to ten% a 12 months, mentioning bettering returns at the cash it is making an investment. Greater than 80% of the brand new eating places will come with “Chipotlanes,” the drive-thru lanes devoted to choosing up simplest virtual orders.

    “What Chipotlane could also be permitting us to do is cross into those small cities, the place we’ve any other handy get right of entry to level,” CEO Brian Niccol mentioned on a convention name with analysts. He outlined “small cities” as spaces with populations of 40,000 or extra folks.

    Many up-and-coming eating place chains, like Sweetgreen and Cava, have begun transferring their center of attention to suburban spaces, however Chipotle is coming into the following degree of expansion for its footprint because it opens places deeper within the suburban sprawl of the U.S. and Canada.

    Chipotle Leader Eating place Officer Scott Boatwright credit Chipotle’s recognition to the business plan below Niccol, who changed into CEO 4 years in the past after a a success stint main Yum Manufacturers’ Taco Bell. Fellow Taco Bell alumnus Chris Brandt took the reins as leader advertising and marketing officer of Chipotle and started spending on conventional promoting, like tv ads. The corporate even ran its first-ever Tremendous Bowl advert ultimate 12 months.

    “Now we’ve a countrywide presence,” Boatwright mentioned in an interview. “I believe those smaller communities, they acknowledge the emblem and spot it on social [media], on tv, and people are in point of fact popping out in throngs in those smaller communities that we now have struggled in traditionally.”

    Boatwright mentioned the chain advantages from less expensive rentals in small cities. And in spite of serving smaller populations, eating places in smaller cities are nonetheless seeing sturdy gross sales.

    “It is a in point of fact favorable place to be in,” he mentioned.

    Correction: Scott Boatwright is Chipotle’s leader eating place officer. An previous model misspelled his identify.

  • Taco Bell mum or dad Yum Manufacturers misses profits estimates as upper prices weigh on earnings

    Shoppers dressed in Taco Bell foam taco hats go out the corporate’s eating place, a unit of Yum! Manufacturers Inc. in Bangkok, Thailand.

    Brent Lewin | Bloomberg | Getty Photographs

    Yum Manufacturers on Wednesday reported combined effects for its fourth quarter as upper prices weighed on earnings, resulting in an profits omit.

    Stocks of the corporate rose greater than 4% in early buying and selling.

    Here is what Yum reported for the quarter ended Dec. 31 in comparison with what Wall Boulevard used to be anticipating, according to a survey of analysts via Refinitiv:

    • Income according to proportion: $1.02 adjusted vs. $1.09 anticipated
    • Earnings: $1.89 billion vs. $1.88 billion anticipated

    Yum reported fourth-quarter web source of revenue of $330 million, or $1.11 according to proportion, down from $332 million, or $1.08 according to proportion, a yr previous.

    Aside from pieces, the corporate earned $1.02 according to proportion, falling wanting the $1.09 according to proportion anticipated via analysts surveyed via Refinitiv.

    Taco Bell, KFC and Pizza Hut all noticed corporate eating place margins shrink all through the quarter. Around the eating place trade, operators were coping with upper meals, freight and hard work prices.

    Internet gross sales rose 8% to $1.89 billion, topping expectancies of $1.88 billion. Yum reported same-store gross sales enlargement of five% in comparison with the year-ago duration and four% on a two-year foundation.

    Taco Bell reported the best possible bounce in same-store gross sales enlargement of Yum’s portfolio. The Mexican-inspired chain noticed its same-store gross sales climb 8% after a number of weaker quarters, harm via a loss of late-night and morning shoppers. Taco Bell offered a brand new line of breakfast burritos within the quarter as a part of a bid to rejuvenate morning gross sales. Just about 20% of Taco Bell transactions within the U.S. are virtual orders, executives mentioned on an profits name.

    KFC’s same-store gross sales rose 5% within the quarter. Within the U.S., its second-largest marketplace, same-store gross sales jumped 4%. Call for for its made over rooster sandwich has stayed robust, accounting for 9% of the chain’s product combine now, up from 1% prior to the reformulation. KFC’s home marketplace accounts for lower than a 5th of its systemwide gross sales. Shrinking systemwide gross sales in China, its greatest marketplace, weighed at the chain’s general same-store gross sales enlargement.

    Pizza Hut reported same-store gross sales enlargement of three%. The chain’s U.S. same-store gross sales ticked up simply 1% within the quarter because the marketplace confronted tricky comparisons with final yr’s same-store gross sales enlargement. Within the U.S., Pizza Hut has been seeking to mount a comeback, an effort that used to be first of all helped via hovering call for for its pizza all through lockdowns. Executives mentioned the Covid omicron variant put drive on pizza supply as a result of a scarcity of drivers.

    “I feel the excellent news is we consider, as [CEO David Gibbs] mentioned, that we are previous the height more than likely two or 3 weeks in the past, and we have been speaking to our CEOs [Tuesday] that issues have got much better within the final couple of weeks,” mentioned Yum CFO Chris Turner.

    In 2022, Yum expects to go back to its long-term purpose of same-store gross sales enlargement in a spread of two% to three% and unit enlargement of four% to five%.

    Learn the entire profits document right here.