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Yum Brands Quarterly profit and revenue reported on Tuesday missed Wall Street expectations as same-store sales at KFC and Pizza Hut fell more than expected.
What’s this company reports Compared to Wall Street expectations, according to a survey of analysts by LSEG:
- Earnings per share: Adjusted $1.37, $1.41 expected
- Revenue: $1.83 billion, $1.9 billion expected
Yum reported third-quarter net income of $382 million, or $1.35 a share, down from $416 million, or $1.46 a share, in the same period last year.
Excluding items, the company earned $1.37 per share.
Net sales grew 7% to $1.83 billion.
Global same-store sales for Yum Brands fell 2% in the quarter, dragged down by weak performance at KFC and Pizza Hut, which both fell 4%.
Chief Executive David Gibbs said in a statement that the company’s sales were affected by pressures related to “political conflicts and consumer sentiment challenges.” Conflict in the Middle East has been weighing on Yum’s performance since the fourth quarter of last year.
KFC’s U.S. same-store sales fell 5% in the quarter. The market is KFC’s second-largest after China, but the chain has ceded market share to Popeye’s in recent years. Last year, Popeyes overtook KFC as the second-largest chicken chain in the U.S.
Pizza Hut, on the other hand, has seen a steeper decline in its international markets. The pizza chain’s international same-store sales fell 6%, while U.S. same-store sales fell just 1%.
Taco Bell, the jewel in Yum!’s portfolio, reported same-store sales growth of 4%. Executives have previously said the chain has a strong sense of value to consumers, helping its sales even as the overall industry slows.
This story is developing. Please check back for updates.
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