Yum Brands’ quarterly performance fell short of analysts’ expectations, with Pizza Hut and KFC facing challenges in attracting customers. The company’s shares dropped by over 4% in premarket trading. Yum reported quarterly earnings of $1.15 per share, excluding investment losses and other items, while analysts had anticipated $1.20 per share. Revenue came in at $1.6 billion, below the expected $1.71 billion. Yum’s overall net income increased to $314 million, or $1.10 per share, compared to $300 million, or $1.05 per share, in the same period last year. Across Yum’s three major brands, only Taco Bell managed to achieve positive same-store sales growth, with a 1% increase. Taco Bell’s U.S. locations saw a 2% rise, while its international business experienced a 2% decline. KFC’s same-store sales declined by 2%, with the U.S. market facing a more significant 7% drop. However, KFC’s international division mitigated some of the losses with a 2% decrease, primarily driven by growth in China. Pizza Hut struggled the most, with a 7% decrease in same-store sales, affected by weak demand both domestically and internationally. Despite these challenges, Yum’s digital sales continued to perform well, surpassing 50% of total sales for the first time. Moreover, the company’s global footprint expanded by 6% in the quarter with the addition of 808 new restaurants.
Yum Brands Stock Falls After Q1 Miss, Pizza Hut and KFC Struggle
