Yum Brands (YUM) Q1 2024 Earnings | Wilnesh News

Yum Brands Quarterly profit and revenue reported on Wednesday missed analysts’ expectations as Pizza Hut and KFC struggled to attract customers.

The company’s shares fell more than 4% in premarket trading.

The company’s report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):

• Earnings per share: Adjusted $1.15, $1.20 expected
• Revenue: $1.6 billion, $1.71 billion expected

Yum reported first-quarter net income of $314 million, or $1.10 per share, up from $300 million, or $1.05 per share, in the same period last year.

Excluding investment losses and other items, the company earned $1.15 per share.

net sales down 3% to $1.6 billion. Yum Brands’ global same-store sales also fell 3% this quarter, lower than StreetAccount’s forecast of 0.2% same-store sales growth.

Of Yum Brands’ three major brands, only Taco Bell reported same-store sales growth. The Mexican-style chain’s metric rose 1% in the quarter. Taco Bell’s U.S. same-store sales grew 2%, while its international business fell 2%.

KFC’s same-store sales fell 2% in the quarter. The decline in the United States was even greater, down 7%. However, same-store sales at the chicken chain’s international division fell just 2% due to growth in China, its largest market. A year ago, KFC’s quarterly same-store sales grew 9%.

Pizza Hut reported a 7% decline in same-store sales as demand lagged in both domestic and international markets. The pizza chain’s U.S. restaurants were down 6%, while its international unit was down 8%. The chain faces tough challenges compared with the same period last year, when Pizza Hut reported a 7% increase in same-store sales, driven by newly launched Melts.

The company’s digital business was one of the few bright spots this quarter. Yum said its digital sales accounted for more than 50% of sales for the first time.

Yum!’s global footprint grew 6% this quarter, thanks to the opening of 808 new restaurants.