Wed 3rd May 2017 - Yum! Brands reports first-quarter growth for KFC and Pizza Hut in the UK Yum! Brands reports first-quarter growth for KFC and Pizza Hut in the UK: Yum! Brands has reported that its 900-plus KFC business in the UK grew sales by 5% in the first quarter to 31 March 2017 – the UK division accounts for 6% of global KFC sales. Meanwhile, its Pizza Hut business in the UK grew sales by 4% in the first quarter – the UK accounts for 5% of global Pizza Hut sales. Globally, KFC like-for-like sales increased 2% with US like-for-like sales growing 2% – system sales increased 5%. Operating profit increased 13% to $207m, driven by like-for-like sales growth, franchise net-unit development and decreased general and administrative costs. KFC opened 176 international restaurants in 36 countries, including 150 units in emerging markets during the period. Taco Bell like-for-like sales increased 8% and system sales rose 12% while achieving a 21.8% restaurant margin. Operating profit grew 19% to $141m. Taco Bell opened 54 restaurants during the period. Pizza Hut sales were flat globally with like-for-likes down 3%. US system sales, which account for 48% of global sales, were down 6%. Pizza Hut opened 152 international restaurants in 36 countries, including 83 units in emerging markets. Operating margin increased 3.2% driven by refranchising partially offset by a decrease in like-for-like sales. Operating profit fell 7% to $83m. Yum! Brands’ total revenue in the first quarter fell 2% to $1.42bn as it sold more restaurants to franchisees. Chief executive Greg Creed said: “Our strategic transformation of Yum! Brands is already well under way, helping us deliver a solid start to 2017 with core operating profit growth of 9% in the first quarter. This growth was led by Taco Bell’s impressive like-for-like sales growth of 8% and double-digit core operating profit growth at KFC, partially offset by weakness at Pizza Hut US. We remain confident that our multi-year strategy to be more focused, more franchised and more efficient will further strengthen our brands, accelerate growth, increase consistency in our results and increase capital returns.”