Yum Brands beats Q2 sales forecasts on new stores, traffic

KFC and Taco Bell parent Yum Brands posted better-than-expected sales in the second quarter thanks to stronger customer demand and a record store building spree

The company that owns KFC and Taco Bell posted better-than-expected sales in the second quarter thanks to stronger customer demand and a record new store building spree. Yum Brands built 603 net new stores during the quarter, including 522 KFC outlets in 62 countries. As a result of the strong quarter, the company raised its outlook for new store growth from 4% to between 4% and 5% in 2021 and 2022. CEO David Gibbs said the pace of store openings reflected the health of the company's brands coming out of the pandemic. “When our unit economics are good, it’s an attractive proposition for our franchisees to build,” Gibbs said in a conference call with investors Thursday. Worldwide, 98% of Yum's restaurants are owned by franchisees.