Operating loss of Yum! Brands Q3 widens to USD 8 mn in India

Yum! Brands Inc that owns KFC, Pizza Hut chains and Taco Bells has reported widening of operating loss in India to USD 8 million in the third quarter due to falling same-store sales.
The Kentucky-headquartered firm had posted an operating loss of USD 3 million in the prior year in India, which is considered to be one of its key markets.
"India division system sales decreased 9 per cent prior to foreign currency translation, as 10 per cent unit growth was offset by an 18 per cent same-store sales decline," the company said in a statement.
The company is facing stiff competition in India from rivals like Dominos and McDonald's.

In the September quarter, despite opening new stores, Yum! Brands' India division reported total revenue of USD 29 million as against revenue of USD 36 million in the corresponding period in the previous year.
At present, Yum Brands! operates 811 stores -- (426 Pizza Hut outlets, 378 KFC and 7 Taco Bell) in India.

Contrary to the Indian performance, Yum! Brands' China business had a total revenue of USD 1,969 million in the September 2015 quarter as against USD 1,840 million in the year-ago period.
"China Division system sales increased 8 per cent, driven by 7 per cent unit growth and 2 per cent same-store sales growth. Restaurant margin increased 4.7 percentage points to 19.6 per cent. Operating profit increased 64 per cent," the company said.

Globally, Yum! Brands sales grew by 6 per cent.
"Worldwide restaurant margin increased 3.3 percentage points to 18.2 per cent and worldwide operating profit increased 23 per cent," the company added.
Same store sales refer to revenue generated by existing outlets over a particular period over the same period.