New and popular product rollouts for Yum! Brands-owned ( NYSE: YUM ) chains KFC and Taco Bell are likely to be key talking points for the restaurant operators earnings on Wednesday.
According to data analytics firm Placer.ai, the rollout of Mexican Pizza at Taco Bell after a brief discontinuation led to an over 60% spike in foot traffic to locations during the month of May. That surge in traffic was not quick to abate either, as elevated customer visits continued into June as the chain struggled to contend with the level of demand.
Yum! Brands ( YUM ) CEO David Gibbs called the product’s success a “cultural moment” during the company’s first quarter earnings call, boosting Taco Bell sales by 37% into the month. In late May, the company disclosed that total customer orders for Mexican Pizza were 700% higher - upon its reintroduction as compared to its time as a staple on the menu.
Unfortunately for the chain, the pizza’s success strained supply chains for the ingredients and caused the restaurant to limit its availability. The chain plans a full rollout in the fall .
For KFC, a new chicken nugget menu option is already driving increased foot traffic to locations, according to Placer data. The new product is currently undergoing market testing in Charlotte, North Carolina, entering the menu in the market starting on July 18. Placer.ai’s market data revealed foot traffic surged in the market to levels over three times the national average.
The success of the product could be a key factor to monitor in same store sales trends, with potential to mirror the success of the Restaurant Brands-owned ( QSR ) Popeye’s chicken sandwich . Details on new product offering's success in its test market and plans for a potential broader rollout are anticipated as management addresses analysts on Wednesday.
Read more on why Goldman Sachs turned from a bear to a bull shortly before the earnings release.
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New products in focus for Yum! Brands earnings