#KFC Zinger or the #Chicken bucket? #Popcorn Chicken or the #Kentucky Nuggets?
#Pizza Hut: #Magic Pan, #Classic Pan or the #Cheesy Bites?
Don’t they seem like the toughest choices to make when it comes to spending your pocket money, which is almost always on an all time low, when you just can’t resist dropping in your favorite fast food restaurant to drive your hunger away? Still we love to make our brains exercise on these questions every once a week or sometimes even more!! I’m sure I’ve already set your taste buds watering and all your favorite dishes are at once in front of your eyes and you’re dying to grab a bite! But before you set out to feed yourself up let’s quickly know what’s
up with the parent brand, #Yum Brands, of KFC and Pizza Hut!!
Yum Brands.Inc has been able to grow its revenues year over year, though of late it has witnessed a 15% drop in its profits compared to the previous year! This has been caused due to a fall in its sales in China which serves as a key market for Yum, generating more than half of the company’s revenue. The downing trend in revenues dates back to December last when allegations that the suppliers were giving chickens with unapproved level of antibiotics became prevalent. The rise in prices, during the period, of the products can thus been accounted to the low level of sales.
Now as allegations are subsiding the company sees better future prospects! The company has reported a 10% drop in June sales at restaurants in China which is a smaller decline compared to those of May when the lower sales related to the country’s bird flu outbreak began to moderate! One can thus expect lower prices in the future owing to rising sales as the company expects to be back with a bang in terms of profits in 2014!!
Currently running 300 Pizza Hut outlets (both company and franchise owned) in the in the US, the company aims at a 700 in the long run. The investment is sure to increase the marketing spend, also on account of making Pizza Hut Delivery “visible” as it aims. This as it expects is going to help franchises grow faster. But what’s in store for the consumers? Expecting a rise in price owing to the increased expenditure, not only in the US but other countries too seems pretty fair! And how are the consumers going to respond to the expansion? The ease of access due to the increased number of outlets in the US might give a boost to the sales and they might as well be ready to pay a higher price for the convenience, but if prices rise elsewhere i.e in countries other than the US, it might lead to a downfall in the sales and thus the revenue generated if the sales fall by more than the rise in sales in the US! So let’s wait and see in who’s favor do the tables turn!!
Well, now you’re free to go grab your favorite dish! Enjoy eating! And do share your view on the company’s prospects with us through the comment box below!
You might also enjoy reading:
Arresting Rupee Downfall, Steps that need to be taken.
The Croatian Dilemma
The Free Fall Demystified. The Rupee against the Dollar.
How Incredible is the ‘Incredible India’?
Views presented in the article are those of the author and not of ED.