Quick service restaurants (QSRs) are within the business of quick order processing and delivery. Now, Yum Brands Inc. has a fast turnaround to grow to be the self-proclaimed world’s fastest digital restaurant company.
Digital sales already account for over 50% of all sales for the owner of fast food brands KFC, Taco Bell and Pizza Hut.
“Momentum within the critical and strategic areas of our business stays strong,” CEO David Giggs told analysts on a recent earnings call. “This includes robust increases in digital sales, progress leveraging our scale, continued deployment of our proprietary technology ecosystem, and efficiency improvements in our cost structure from efforts underway in the subsequent phase of our journey to be a number one global digital restaurant company.
Yum Brands digital sales in Q2
Yum Brands projects that its total revenue will reach $8 billion this 12 months. For its fiscal second quarter ended June 30, Yum Brands reported total sales of $1.763 billion. That’s a rise of 4% from sales of $1.687 billion within the second quarter of 2023. Net income was $367 million compared with $418 million within the previous 12 months.
To facilitate the expansion of digital sales, Yum Brands is devoting more resources to ecommerce, artificial intelligence (AI) and data collection, the corporate says.
“Data is becoming a vital differentiator, enabling us and our franchisees to generate higher insights and make higher decisions,” Giggs said. “We consider we’re still only scratching the surface of the complete value-creation potential of our capabilities.”
Within the second quarter, Yum focused on constructing and acquiring platforms including:
- Yum Commerce Platform: Omnichannel ordering engine that facilitates ordering across all Yum corporations.
- Poseidon: Cloud-based point-of-sale system that facilitates order management, money management, and store reporting.
- Yum Admin Portal: Allows franchisees to administer hours, menus and promotions.
- Tictuk: Omnichannel ordering and marketing platform that operates across multiple channels.
“We’re making incredible strides toward our distinctive digital and technology ambitions, our 50% plus digital sales mix and our continued rollout of distinctive digital and AI technologies are testaments to that pursuit,” he told analysts.
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