(Reuters) – Yum Brands topped market estimates for quarterly comparable sales and profit on Wednesday, as cheaper meals and promotional offers at its KFC restaurants drew in more customers while easing cost pressures boosted margins.
Yum Brands has attracted more lower-income consumers who have been most hit by inflation through aggressive promotions and offers, while an array of new menu item launches across its brands have also helped boost traffic.
At KFC, Yum Brands has banked on new launches, such as its chicken nuggets introduced in March, and cheaper meal options like the $5 Mac & Cheese Bowls and the 2-for-$5 fried chicken wrap offers, which helped quarterly comparable sales rise 13%, better than estimates of 8.29%.
Meanwhile, Taco Bell’s second-quarter same store sales grew 4%, compared with expectations of a 4.18% rise.
Same-store sales at the company, which also owns the Pizza Hut chain, rose 9%, compared with analysts’ estimates of a 7.01% increase, according to Refinitiv IBES data.
Excluding items, Yum Brands earned $1.41 per share, above estimates of $1.24 per share.
(Reporting by Deborah Sophia in Bengaluru; Editing by Shinjini Ganguli)
