Yum! Brands chief financial officer Rick Carucci told investors and analysts in the company's earnings call yesterday that the company expects the fourth quarter to be its worst yet for its U.S. business.
Yum!, parent company of Taco Bell, KFC and Pizza Hut, yesterday reported a 6 percent drop in U.S. same-store sales, with profits boosted by growth in China. In the United States, Taco Bell and KFC comps both were down 2 percent, while Pizza Hut's dropped 13 percent.
Taco Bell will continue its value positioning, including today's launch of its limited-time-only Blackjack Taco priced at 89 cents, as announced to the chain's Facebook fans. The new taco features seasoned ground beef and pepperjack sauce.
"We believe the brand's sales are soft because everyone is now focusing on the value game and customers are obviously cutting back across the board," Yum! chairman and CEO David C. Novak said on the call.
Novak also told investors that KFC's Kentucky Grilled Chicken has been "an unqualified success. It started the process of transforming the brand by overcoming KFC's biggest barrier to frequency, people looking for more balanced choices."
Even though comps were down for the quarter, KFC will continue to build awarness for the product line by driving trial, including bringing back the $3.99 two-piece meal.
"Kentucky Grilled Chicken was a major step in the right direction," he said. "The investment we have made in Kentucky Grilled Chicken will help us be much more competitive in 2010 and beyond. We needed to broaden the appeal of this brand, and we have done it."
