Yum! Brands sees its Russian sales rise 47% in Q4; overall revenue in nation for 2013 up 48%
February 4, 2014
(Interfax Information Services)
– Yum! Brands Inc., the owner of fast food chain KFC, boosted revenue in Russia 48% in 2013, the company said in a statement.
Sales in Russia climbed 47% in the fourth quarter, not taking into account exchange rate fluctuations.
Russia accounted for 3% of sales for Yum! Restaurants International, the international division of Yum! Brands.
Yum! Restaurants International saw overall revenue fall 6% last year to $3.09 billion, and 3% in Q4 to $998 million. Operating profit grew 6% in 2013 to $760 million, and 5% in Q4 to $235 million.
Excluding exchange rate fluctuations, revenue for Yum! Restaurants International grew 5% in 2013, and in Q4 - 6%. In developing markets, growth was 11% for the year and the quarter. Revenue in developed markets grew 1% for the year and 3% for Q4.
Yum! Restaurants International opened 1,055 restaurants in 78 countries last year, including 703 restaurants in developing markets.
Yum! Brands' total revenue in 2013 was $13.08 billion, down 4% from 2012. Excluding exchange rate fluctuations, revenue growth was 2%, while net profit fell 32% to $1.09 billion.
Yum! Brands, based in Louisville, Kentucky, is the largest restaurant company in the world by number of outlets, with about 40,000 restaurants in 130 countries. The company's main brands are KFC, Pizza Hut and Taco Bell.
In Russia, Yum! Brands formed a strategic alliance with Rostik Group in 2005 to develop the Rostik's-KFC chain. In 2006, Rostik's-KFC became a separate business unit of the Russian group. Yum! Brands bought the Russian fast food chain Rostik's-KFC in 2010 and in 2011 began converting the restaurants to the KFC brand.
The CIS is one of the fastest growing markets and a priority for Yum! Brands, the company has said. It was reported earlier that Yum! Brands plans to expand its chain in the region to 460 outlets by 2015 and increase annual revenue to $1 billion.
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