Today’s news in brief – 03/11/23
Starbucks revenues increased 11% to $35.9bn for the full year ended 1 October, as global comparable store sales increased by 8%. The company’s operating income for the full year increased by 27% to $5.8bn compared with $4.6bn in 2022. In Q4, net revenues for the international segment grew by 11%. Starbucks opened 816 new stores by the end of Q4, ending the period with 38,038 stores worldwide.
KFC owner Yum! Brands reported an increase in net income of 26% to $416m for Q3 ended 30 September, with total revenues rising by 4% to $1.71bn. KFC contributed 13% to the overall global sales growth, followed by Taco Bell with 11% and Pizza Hut with 4%. KFC reported a 13.1% increase in operating profit to $344m, opening 664 new restaurants across 57 countries during the quarter. Digital sales for Yum Brands exceeded $7bn, with a digital mix above 45%.
Some 49% of restaurant-goers stated that a few bad experiences are the biggest reason for becoming less loyal to a brand, a survey by CGA and Zonal found. The survey of more than 5,000 UK adults also revealed that 52% of consumers have higher expectations of the brands they are loyal to due to the cost-of-living crisis, rising to 64% among 18-to-24-year-olds. Moreover, 37% of respondents said that a rise in prices would cause them to be less loyal.
CMBC plans to invest over £10m in upgrading equipment at its Northampton Brewery to increase its capacity for producing Snap Pack packaging and reduce water usage. Snap Pack technology, which uses glue dot technology to hold cans together, removes the need for plastic rings and is more sustainable. The new second-generation Snap Pack machine will double the number of Snap Pack multipacks produced, with the goal of a full transition by the end of 2024.
