For the second consecutive quarter, Yum! Brands' digital sales increased by more than $1 billion over the prior year and set a single quarter record of $4 billion.
Worldwide, about 98% of its stores across its four brands are open in a full or limited capacity.
“Despite the challenges related to COVID, we delivered core operating profit growth of 7%,” said David Gibbs, CEO, in a Q3 earnings call with analysts on Oct. 29. “This strength can be attributed to strong growth in our Taco Bell division and an improvement in franchisee health."
Yum! has four global brands. Across the board, off-premises and digital ordering has posted impressive results.
Yum now has over 35,000 restaurants offering delivery around the world, representing an 11% increase year-over-year, in part driven by expanded aggregator partnerships.
Here are some of the Q3 highlights:
The pizza brand reported a Q3 system sales decline of 4% with a 3% same-store sales decline and a 4% net new unit decline. “Global off-premise same-store sales grew mid-teens year-over-year, which is clearly encouraging. COVID is highlighting how important the future of off-premise is and we intend to use this momentum to further advance the off-premise category and continue to decrease our dine-in asset footprint,” said Gibbs.
Pizza Hut U.S. had another positive quarter with same-store sales growth of 6% with its off-premise channel generating 17% same-store sales growth, despite a 4% drag from closures and sales headwinds in express units.