Advertising Age: Advertising agencies, marketers and public relations experts have bashed KFC for its Kentucky Grilled Chicken promotion, from it "unthink KFC" messaging to the botched Oprah coupon. But KFC credited those advertising efforts for the products in its latest earnings call.
Early returns on grilled chicken show heavy trial, strong repurchase intent and signs of a turnaround at the long-ailing brand. KFC posted positive same-store sales for the first time in two years, up 3 percent during the second quarter from last year.
Still, Yum! Brands CEO David Novak acknowledged that sales fell off toward the end of the quarter due to the emphasis of a $9.99-bucket offer.
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Novak also announced during the earnings call that KFC saw an unprecedented 30-point swing in same-store sales growth vs. Kentucky Grilled Chicken pre-launch comps. The product is sustaining at more than 40 percent of chicken-on-the-bone sales. The company also plans to develop other grilled types of products as a result of the platform's success.
