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KFC Profits Go South in India for Q2
In a recent financial report, India’s Devyani International, the operator of popular fast-food chains KFC and Pizza Hut, revealed a 43.2% decline in quarterly profits for Q2.
This downturn, attributed to escalating raw material costs, casts a shadow over the company’s performance despite a surge in demand fueled by strategic promotions.
The fast-food giant reported a consolidated net profit of 333.5 million rupees ($4.01 million) for the quarter ending September 30, down from 587.6 million rupees in the previous year.
Chairman Ravi Kant Jaipuria acknowledged the impact of high inflation across various industries, which has adversely affected consumer sentiment and spending patterns in recent quarters.
The Profit Plunge: Unpacking Q2 Financials
Devyani’s revenue from operations, however, experienced a 9.6% upswing, reaching 8.19 billion rupees. This growth was primarily propelled by the success of promotional initiatives like the “Wednesday offers” at KFC and the one-plus-one deal at Pizza Hut.
The second quarter witnessed a notable surge in the prices of essential ingredients, including cheese and vegetables. This surge compelled several restaurants, including Devyani’s franchises, to grapple with decisions like temporarily…
