Additional Coverage:
- KFC and Taco Bell are doubling down on Gen Z (businessinsider.com)
Yum Brands, owner of fast-food giants like Taco Bell, KFC, and Pizza Hut, reported its second-quarter earnings on Tuesday, slightly missing analyst projections. Despite the narrow miss, the company remains focused on attracting Gen Z customers with innovative drink and sauce offerings.
Outgoing CEO David Gibbs, who will hand over the reins to CFO Chris Turner in October, highlighted the company’s youth-oriented strategy during the earnings call. While the company reported adjusted earnings per share of $1.44 and revenue of $1.93 billion, Gibbs expressed confidence in their approach.
Taco Bell’s Gen Z-inspired Live Más Café, featuring customizable drinks, is slated for expansion this year. Similarly, KFC is pushing its specialty chicken strip and sauce concept, Saucy, and its Kwench drink line. Both initiatives have shown promise in driving sales growth, according to Gibbs.
Taco Bell’s focus on limited-time offerings and its new beverage program appears to be paying off. Gibbs noted a significant increase in transactions and dine-in traffic at the test Live Más Café location, attributing the success to the wide array of customizable drinks. This success is echoed by data showing increased foot traffic at Taco Bell locations, driven by value-oriented menu items.
KFC, while facing challenges in the US market, saw strong international performance. The chain plans to expand its Kwench beverage line, currently being tested overseas, and continue developing the Saucy concept.
Gibbs announced plans to open more Saucy test locations, citing its popularity with the under-30 demographic. He emphasized the valuable consumer insights gained from the Saucy experiment, which could benefit the broader KFC brand.
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- KFC and Taco Bell are doubling down on Gen Z (businessinsider.com)