|Greg Creed, CEO of Yum! Brands|
“When you bite into the pizza, it will be crispier as a result of our new proprietary sheet included inside every box,” Creed said during a Nov. 2 earnings call. “Each of these changes are designed to deliver on our commitment to hot. These changes were rolled out to all Pizza Huts across the US just after the end of the third quarter and will be part of your next Pizza Hut experience.”
That and other efforts under way at Pizza Hut are showing steady, but early, progress, which Creed described as a “nice positive build.”
“Don't expect any heroics, but we do believe we can, by getting the foundations in place and doing the right things, continue to progress our Pizza Hut US performance,” he said.
Recently, the company announced the hiring of 14,000 new delivery drivers by the end of the year, in addition to other operational enhancements to make the delivery system at Pizza Hut more efficient, Creed said. The pizza chain also inked a transformation agreement with franchisees in May that will increase national advertising and build awareness of the brand’s efforts around digital and delivery.
Net income at Yum! Brands in the third quarter ended Sept. 30 was $418 million, equal to $1.18 per share on the common stock, down 35 percent from $640 million, or $0.55, in the prior-year period. Excluding special items, earnings per share rose 22 percent to $0.68 from $0.56. Revenues totaled $1,436 million, down 5 percent from $1,518 million.
Worldwide system sales grew 6 percent, reflecting growth of 7 percent at KFC, 6 percent at Taco Bell and 3 percent at Pizza Hut.