Yum Brands CEO says corporate is ‘beautiful insulated’ from tariff woes

In a Wednesday interview with CNBC’s Jim Cramer, Yum Brands CEO David Gibbs claimed President Donald Trump’s sweeping price lists have not impacted the corporate’s many chains the world over.

“We have not seen any pushback related to tariffs in any of the markets that we operate in,” Gibbs mentioned. “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 plenty of primary rapid meals franchises, together with KFC, Taco Bell and Pizza Hut. It posted a blended quarter Wednesday, as Pizza Hut’s same-store gross sales got here in less than anticipated, however Taco Bell beat the estimates. The inventory controlled to complete the consultation up 1.86%.

Conflict within the Middle East weighed on industry ultimate 12 months, and the corporate reported slowed client spending and closed greater than 200 places around the house. But in line with Gibbs, this quarter marked a restoration from the ones problems. He mentioned KFC International, which is “the bellwether of our international business,” publish same-store gross sales enlargement.

Gibbs additionally touched on Yum Brands’ foray into synthetic intelligence and partnership with Nvidia, announcing the corporate has simply begun to make use of the brand new era. More than 500 Taco Bell places have voice AI of their power throughs, he mentioned. He alleged that staff experience the brand new function, and turnover in the ones retail outlets is down.

“It’s actually obviously driving labor savings force while at the same time improving the experience for the employee,” Gibbs mentioned. “It’s really where the future is going.”

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Disclaimer The CNBC Investing Club holds stocks of Nvidia.