The company that owns
As a result of the strong quarter, the company raised its outlook for new store growth from 4% to between 4% and 5% in 2021 and 2022. CEO
“When our unit economics are good, it’s an attractive proposition for our franchisees to build,” Gibbs said in a conference call with investors Thursday. Worldwide, 98% of Yum's restaurants are owned by franchisees.
Revenue for the
Gibbs also noted a sharp increase in digital sales, including online orders for pickup and delivery. Digital orders grew 35% year-over-year to
Digital orders save on labor costs and ensure more seamless service, Gibbs said, and customers ordering online also tend to order more.
“Digital is one of those things that have no downside,” he said.
To facilitate that growth, Yum agreed to acquire
Yum’s scale __ with more than 50,000 restaurants worldwide __ is helping blunt the impact of higher commodity prices, Gibbs said. But he said
Restaurants have been struggling to hire enough workers as the pandemic eases and demand soars. On Wednesday, Yum rival McDonald's said it has raised pay for
Same-store sales, or sales at locations open at least a year, jumped 23%, which was higher than
Same-store sales also rose compared to 2019 levels. But on that basis the numbers were more uneven, with stronger results in the
KFC
Similarly, Pizza Hut’s
Net income rose 89% to
Yum’s results came the day after McDonald’s reported a big rebound in the second quarter. McDonald’s said its global same-store sales jumped 40.5% in the April-June period.
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