Yum! Brands has reported results for the fourth quarter ended 27 December 2014 with global sales rising by 3%. Worldwide restaurant margins decreased by 0.5% to 14.5%. and operating profit increased 1%.
KFC's sales increased by 6%, driven by 2% unit growth and 3% same-store sales growth, and Pizza Hut's sales increased 1%, driven by 2% unit growth and offset by a 1% same-store sales decline.
Greg Creed, CEO, said “We are committed to restoring our track record of delivering at least 10% annual EPS growth year after year. I am confident we will do this in 2015 as our China business recovers and we sustain positive momentum across the rest of Yum!.
'We expect KFC’s strong results to sustain into 2015 as robust international performance, coupled with an improving U.S. business, drive solid sales and profit growth.
'While the initial relaunch of the Pizza Hut brand in the US did not deliver the sales lift we expected, consumers have responded positively to the new menu and we intend to leverage this more effectively going forward.
'Across Yum! we expect to open over 2,100 new international restaurants this year, further strengthening our lead in emerging markets.'