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Yum! sells Pizza Hut for US$2.7bn
Yum! Brands has lost its taste for Pizza Hut, agreeing to sell the chain for US$2.7 billion (A$3.8 billion) as the growth of food delivery services slices demand for its restaurants. The fast food restaurant operator said it would sell Pizza Hut to a United States private equity firm, LongRange Capital, for $1.5 billion, except for the operations in mainland China business, which would be purchased by Yum China Holdings for $1.2 billion. “These transactions enable Yum! to be a more focused company that continues to leverage scale, technology and talent to accelerate our raising the B.A.R. priorities and deliver sustained value for our stakeholders,” Chief Executive Chris Turner said in a news release. BAR stands for Boldly Act, Relentlessly Improve, and Raise the Bar internal operating framework. Yum! said it expected to receive $2.3 billion in net proceeds after taxes, fees and closing adjustments and possibly also an earn-out payment of up to $75 million from LongRange by 2030. The transactions are expected to be completed in the third quarter of 2026, subject to regulatory approvals and other conditions. The decision to sell followed a strategic review of Pizza Hut, precipitated by falling sales at a time when
Food
GYG US exit leaves sour taste as fast food workers sue
A group of United States employees has launched legal action against Guzman Y Gomez (GYG) over the sudden closure of its American operations as the potential cost of this failed expansion attempt starts to mount. The lawsuit filed in an Illinois federal court alleges the ASX-listed Mexican-themed chain failed to give adequate notice to staff before shutting all of its Chicago-area restaurants last week. “GYG is aware of legal action filed in the United States, and we are confident we have met all of our legal obligations to our U.S. employees," a GYG spokesperson was quoted saying in this Reuters story. “We are not in a position to provide further comment on this matter.” The class action claim could reportedly affect more than 500 employees who are seeking up to 60 days’ wages and benefits under U.S. laws requiring employers to provide advance notice of mass layoffs. Chicago law firm Haseeb Legal claimed workers first heard about the closures on 21 May via an internal message posted on the company’s message platform, according to this article in The Guardian. The message allegedly read: “After careful consideration, we have made the difficult decision to exit the US market. This means we will be closing all
Food
The Founders: Making Indigenous ingredients viable
After ending his AFL career, Daniel Motlop entered the business world with his Indigenous food brand, Seven Seasons. While it was quite the career transition, Motlop tells Azzet his childhood in Darwin inspired him. “One thing I did do a lot when I was growing up was go out and obviously get a lot of bush tucker and native ingredients,” he says. While the native food industry has an A$80 million output, only 1% is Indigenous-owned, and Indigenous people make up fewer than 1% of growers, farm managers and exporters. Motlop said being Indigenous-owned helps his business stand out from the competition. “Being Indigenous-owned, and having that knowledge of where ingredients come from, is key to selling native ingredients,” he says. “We also do the wild harvest as well, so we’re out foraging it and collecting it during the season and make sure it's sustainable as well.”Credit: Candid CommsThe company itself is named after local Indigenous seasonal calendars. Seasons in Aboriginal culture are marked by environmental factors of a local area, including changes in weather, plants, animals, and celestial patterns. Motlop says his company was particularly inspired by the seasons in Darwin. “Obviously, the seven sea
Food
McDonald’s earnings beat; warns on weaker spending
McDonald’s reported earnings and revenue ahead of market expectations, but warned that consumer spending conditions may be deteriorating further as higher fuel prices linked to the Iran conflict place additional pressure on lower-income households. Adjusted earnings per share (EPS) came in at US$2.83, ahead of analyst estimates of $2.74, while revenue rose 9% to $6.52 billion, surpassing expectations of $6.47 billion. “McDonald's delivered this quarter. Our 6% global Systemwide sales growth shows how we executed with discipline, proving that we can drive results even in a challenging environment," said Chairman and CEO Chris Kempczinski in the company's earnings release. "And it’s our commitment to going three-for-three that sets McDonald’s apart. Our value leadership, breakthrough marketing, and menu innovation continue to serve up what customers want.” However, executives raised concerns about the current consumer environment. Kempczinski said rising fuel costs caused by the ongoing U.S. conflict with Iran were disproportionately affecting lower-income consumers, a key customer base for McDonald’s and other fast-food chains. Kempczinski noted during the company’s earnings conference call, “I think probably it’s
Food
Coca-Cola beats estimates, sales rise across regions
Coca-Cola beat earnings and revenue estimates last quarter as sales grew across regions, and has raised its full year guidance. Revenue was up 12% year-over-year to US$12.47 billion, above LSEG-compiled estimates of $12.24 billion. Earnings per share increased 18% to $0.86, above estimates of $0.81. “We’ve had a strong start to the year,” said CEO Henrique Braun. “Our performance this quarter reflects our unwavering focus on staying close to the consumer, executing locally and managing complexity.” “Yet there’s so much more we can do as we navigate a dynamic environment. Our team is motivated by the opportunity to build on the company’s great foundation.” Revenue climbed across all regions, with North America leading at 12% growth. Unit case volume also rose in all regions, and the Asia Pacific saw the largest percentage increase at 5%. Coca-Cola Zero Sugar posted 13% volume growth, the most of any product type, while juice, dairy, and plant-based beverages declined by 1%. Operating income was up 19% to $4.36 billion. The Asia Pacific was the only region to report a drop in operating income, with the company crediting the 17% decline to higher input costs, marketing investments, and currency tailwinds. Coca-Co

Food
Starbucks beats estimates, lifts outlook amid turnaround
Starbucks beat earnings and revenue estimates last quarter amid its turnaround efforts, and has raised its full-year guidance. Earnings per share were up 22% year-over-year to US$0.50, above LSEG-compiled estimates of $0.43. Revenue increased 9% to $9.53 billion, passing estimates of $9.16 billion. “Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth,” said chair and CEO Brian Niccol. “This is the Starbucks our customers deserve and the Starbucks we believe will deliver long-term growth and value for our partners and shareholders as we execute consistently, at-scale.” Comparable store sales rose 6.2%, surpassing StreetAccount estimates of 4%. This is its third consecutive quarterly increase in comparable sales. The quarter’s growth was spurred by 3.8% growth in comparable transactions and a 2.3% increase in average ticket. North American comparable store sales were up 7.1%, while international sales climbed 2.6% amid slow growth in China. Starbucks raised its fiscal 2026 guidance to include global and United States comparable store sales growth of at least 5.0%, flat net revenue, and earnings per share of $2.25-2.45. It had projected sales growt
Food
Domino's shares fall on weaker earnings
Domino’s Pizza shares tumbled following weaker-than-expected earnings and same-store sales growth in the United States. Same-store sales for the pizza chain increased by only 0.9%, lower than the 2.3% expected by Wall Street analysts. Earnings per share came in at $4.13, down from $4.33 the same time last year and below expectations of $4.27. “We’re not happy with it,” CEO Russell Weiner told CNBC. The pizza chain also lowered its full-year U.S. same-store sales forecast to low-single digit growth, down from its prior projection that U.S. same-store sales would increase 3%. Domino’s kicked off the earnings season for restaurant chains, and Weiner said he expects more fast-food chains to report similar headwinds. He said this would likely be caused by winter weather and weak consumer sentiment, which took a dive last month due to spiking fuel prices caused by the U.S.-Israeli war with Iran. “One of the bad things about reporting first is you don’t get to hear about anybody else,” Weiner said. Dominos also faced tougher competition this quarter from rival pizza chains like Papa John’s and Pizza Hut, which both matched Dominos US$9.999 “Best Deal Ever” with promotions at the same price point. And Little Cae
Food
PepsiCo beats, NA foods arm returns to volume growth
PepsiCo surpassed revenue and earnings estimates last quarter as its North American foods segment posted its first volume growth in two years. Net revenue increased 8.5% year-over-year to US$19.44 billion, passing LSEG consensus estimates of $18.94 billion. Earnings per share rose 9% to $1.61, beating estimates of $1.55. “We are pleased with our first-quarter results, which featured an acceleration in both net revenue and organic revenue growth – with a notable improvement in convenient foods organic volume. An extensive commercial agenda, which includes the restaging of large global brands, innovation activity and certain affordability initiatives, is being executed well and business performance improved,” said chair and CEO Ramon Laguarta. “We are encouraged with the resilience of the International business while North America continued to make progress in the first quarter. As we look ahead, we aim to successfully execute our commercial plans and tightly manage costs to help fund investments to accelerate growth.” Its North American foods segment reported a 2% increase in volume. The company lowered prices on products like Lay’s, Doritos, and Cheetos in February. North American and international beverages also ea
Food
McCormick investors choke on Unilever foods buyout
McCormick & Company Inc shares fell after it announced the acquisition of Unilever plc's foods business in a cash and shares deal to create a company worth about US$65 billion (A$94.4 billion). McCormick will pay $15.7 billion in cash and $29.1 billion in shares, giving Unilever shareholders 55.1% of the combined company, Unilever 9.9% and McCormick shareholders the balance. The companies said the merged business would have leading brands including McCormick flavours and seasoning, Knorr meal bases and Hellmann’s mayonnaise and high potential brands including Cholula hot sauces and Maille and Frank’s condiments. “The combination of Unilever’s Foods business with McCormick will create a global flavour powerhouse anchored in a portfolio of iconic brands across herbs, spices, seasonings, cooking aids, sauces and condiments,” they said in a media release. London-based Unilever said the transition would position it as a leading pure-play home and personal care (HPC) company. Chief Executive Officer Fernando Fernandez said the transaction was another decisive step in sharpening its portfolio and accelerating its strategy towards high-growth categories. “We are unlocking trapped value through a growth-led separation of