Pizza Hut’s European division has bounced back from a significant loss, reporting a pre-tax profit of $12.2 million (£9.3 million) for 2023.
This comes after the company faced a pre-tax loss of nearly $140 million (£106.4 million) in 2022, according to newly filed documents.
The London-based division’s turnover saw a slight increase, rising from $39.3 million (£29.9 million) to $39.6 million (£30.2 million) during the same period. In the UK, turnover grew from $13 million (£9.9 million) to $13.7 million (£10.4 million). However, sales in the rest of Europe declined slightly, from $26.2 million (£20 million) to $25.9 million (£19.7 million).
Pizza Hut Europe generates revenue through royalties and other income from its franchise operations. The previous year’s loss was partly due to a $135 million (£103 million) impairment related to intellectual property, which did not reflect the company’s current or future trading conditions.
Growth Plans Amid Economic Pressures
In a statement, Pizza Hut emphasized its commitment to growth despite economic challenges. “We have made the appropriate investments and taken a considered path forward to ensure that the business continues to grow while delivering improved returns,” the board stated.
In a positive sign for investors, Pizza Hut paid a dividend of $30 million (£22.8 million) to its parent company this year, after not issuing any dividends in 2022.
Yum! Brands, which owns Pizza Hut, reported strong performance across its brands. The group’s European division achieved a pre-tax profit of $317.1 million (£248.2 million) for 2023, recovering from a pre-tax loss of $300 million (£234.8 million) the previous year.
Yum! Brands, headquartered in the U.S., also operates KFC, Taco Bell, and The Habit Burger Grill. The company was formed in 1997 after being spun off from PepsiCo and has previously owned Long John Silver’s and A&W Restaurants.
As Pizza Hut focuses on expanding its presence in Europe, it aims to strengthen its brand and improve profitability in the coming years.