LOUISVILLE Ky. Taco Bell plans to test premium fish and chicken items while continuing to experiment with breakfast and additions to the chain’s Fresco health-focused line, according to the quick-service giant’s parent, Yum! Brands Inc.
Addressing investors during the company’s second quarter conference call, Yum chairman, chief executive and president David Novak detailed a number of initiatives that are planned for the Mexican brand and its sister brands, Pizza Hut and KFC.
Domestically, Pizza Hut will continue to focus on its new Tuscani Pasta line, Novak said, calling it “one of the most important product launches” in the pizza brand’s 50-year history. He described the two current items in the line, Cheesy Chicken Alfredo and Meaty Marinara pastas, as the “core products,” suggesting that variations could be developed.
“Our long-term bowl goal is to make it as big as pizza,” Novak said.
He also observed that Pizza Hut is “beginning to gain solid momentum” from the rollout of its concept-within-a-concept, Wing Street at Pizza Hut. The chicken wing station has already been retrofitted into 1,500 units, and national advertising for the wings could begin in the fourth quarter of 2009, Novak said.
“Franchisees are now fully behind the rollout,” he said.
Novak referred to KFC’s domestic operation as “our only major soft spot in the world.” He stressed that the chain will move beyond its focus on fried chicken to offer “chicken any way you want it,” starting with ongoing tests of Kentucky Grilled Chicken. But, he said, “we are in the very early stages of this work.”
The longtime leader of Yum also reviewed the company’s efforts to establish new restaurant brands overseas. Its Asian fast-food chain in China, East Dawning, now consists of 14 units, including a unit that was opened in Beijing’s airport in time for the Olympics.
Yum’s China division plans to open 20 more Pizza Hut home-delivery outlets by year end, which would expand that operation to 80 units in 10 cities, Novak said.
He also noted that sales at Yum’s brands in China have rebounded since a massive earthquake struck the Shanghai area earlier this year. The quake did $5 million in damage to stores in that region, the company said.
The conference call, focusing on a quarter in which profits from Yum’s domestic operations fell 12 percent, was held on Thursday. A transcript was released by the financial information site SeekingAlpha.com.
