The Banking and Strategy Initiative

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The Retail Lifestyle Champions: Yum lands on its feet (in China)

The latest earnings season coming in the midst of the debt ceiling raise deadlock, is still an eager one for most US investors as the market has the sunniest prospects around the globe. However, its greatest exports, Pizza and Coke continue to find significant International revenue to underwrite their renewed ambition, the home of Pizza (Italy) and even French Fries is no longer in question as after a successful turnaround for the global Dominos brand and now a rewriting of Pepsi’s Yum brands’ fortunes in China, the pie is indeed larger, more delectable and distinctly American. With due apologies to our dear Moody’s friends who have probably spoken out once to many times in the last two weeks..the consumption business can still preclude any discussions of default and moral turpitude.

Louisville KY always thought it was a great destination for American Business too, and Yum is headquartered here in the back of Kentucky

Commonly listed in Consumer Staples in the US the category has as economists say been instrumental along with luxury retail in showing the difference between the haves and the have-nots growing in double digits since 2009

Yum , which operates Pizza Hut, Taco Bell and KFC did fine though its markets in India and US have plateaued as its entry into China helped it get a $316 mln profit for Q2 raising its expectations of a 12% growth in topline for the year

China accounts for 40% of Yum’s profits, with like to like growth in the three months to April in China as high as 18% for KFC. Sales in the US fell 5% for KFC as also for Pizza Hut and Taco Bell. (BBC) yum also shares its same stores comparison online here

 

Revenues for the chain operator grew to $2.82 bln and is likely to exceed $12 bln for the year. A 28% decline in US profits still hurts the company but as of now it’s China for everyone

 

 

 

Pizza Hut restauraunt in Athens, Ohio, United ...

Image via Wikipedia

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