Quick service restaurants (QSRs) are in the business of quick order processing and delivery. Now, Yum Brands Inc. has a quick turnaround to become 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 in the critical and strategic areas of our business remains 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 next phase of our journey to be a leading global digital restaurant company.
Yum Brands digital sales in Q2
Yum Brands projects that its total revenue will reach $8 billion this year. For its fiscal second quarter ended June 30, Yum Brands reported total sales of $1.763 billion. That’s an increase of 4% from sales of $1.687 billion in the second quarter of 2023. Net income was $367 million compared with $418 million in the previous year.
To facilitate the growth of digital sales, Yum Brands is devoting more resources to ecommerce, artificial intelligence (AI) and data collection, the company says.
“Data is becoming a crucial differentiator, enabling us and our franchisees to generate better insights and make better decisions,” Giggs said. “We believe we are still only scratching the surface of the full value-creation potential of our capabilities.”
In the second quarter, Yum focused on building and acquiring platforms including:
- Yum Commerce Platform: Omnichannel ordering engine that facilitates ordering across all Yum companies.
- Poseidon: Cloud-based point-of-sale system that facilitates order management, cash management, and store reporting.
- Yum Admin Portal: Allows franchisees to manage hours, menus and promotions.
- Tictuk: Omnichannel ordering and marketing platform that operates across multiple channels.
“We are 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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