In a Wednesday interview with CNBC’s Jim Cramer, Yum Brands CEO David Gibbs claimed President Donald Trump’s sweeping tariffs haven’t impacted the company’s many chains across the world.
“We have not seen any pushback related to tariffs in any of the markets that we operate in,” Gibbs said. “We are not affected by tariffs, as you know, for the most part, as most of our supply chain is usually sourced within country. So, our model’s pretty insulated from what’s going on right now.”
Yum Brands owns a number of major fast food franchises, including KFC, Taco Bell and Pizza Hut. It posted a mixed quarter Wednesday, as Pizza Hut’s same-store sales came in lower than expected, but Taco Bell beat the estimates. The stock managed to finish the session up 1.86%.
Conflict in the Middle East weighed on business last year, and the company reported slowed consumer spending and closed more than 200 locations across the area. But according to Gibbs, this quarter marked a recovery from those issues. He said KFC International, which is “the bellwether of our international business,” put up same-store sales growth.
Gibbs also touched on Yum Brands’ foray into artificial intelligence and partnership with Nvidia, saying the company has just begun to employ the new technology. More than 500 Taco Bell locations have voice AI in their drive throughs, he said. He alleged that employees enjoy the new feature, and turnover in those stores is down.
“It’s actually obviously driving labor savings force while at the same time improving the experience for the employee,” Gibbs said. “It’s really where the future is going.”
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