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Yum Brands On Tuesday, the group reported quarterly profits and revenue below Wall Street expectations, as same-store sales at KFC and Pizza Hut fell more than expected.
Here is what the company reported compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: $1.37 adjusted versus $1.41 expected
- Revenue: $1.83 billion versus $1.90 billion expected
Yum reported net income of $382 million, or $1.35 per share, in the third quarter, compared with $416 million, or $1.46 per share, a year earlier.
Excluding items, the company earned $1.37 per share.
Net sales increased 7% to $1.83 billion.
Yum’s global same-store sales fell 2% in the quarter, led by weaker performances at KFC and Pizza Hut, which both saw same-store sales declines of 4%.
The company’s sales have been hurt by pressures related to “political strife and challenged consumer sentiment,” CEO David Gibbs said in a statement. Conflict in the Middle East has weighed on Yum’s results since the fourth quarter of last year.
KFC’s U.S. same-store sales fell 5% this quarter. The market is KFC’s second largest, behind China, but the chain has lost market share to Popeyes in recent years. Last year, Popeyes has overtaken KFC as the second largest chicken chain in the United States
Pizza Hut, on the other hand, has seen a steeper decline in its international markets. The pizza chain saw its international same-store sales decline 6%, while U.S. same-store sales fell just 1%.
Taco Bell, the crown jewel of Yum’s portfolio, reported same-store sales growth of 4%. Executives have previously said the chain has a strong perception of value among consumers, which helps its sales even during an industry-wide downturn.
This story is developing. Please check again for updates.
