Yum Brands\u00a0on Tuesday reported quarterly\u00a0earnings\u00a0and revenue that missed Wall Street\u2019s expectation as same-store sales at KFC and Pizza Hut slid more than expected.<\/p>\n
\u201cThe complex consumer environment that exists in many markets around the globe has contributed to pronounced regional sales variations, which has caused our system-sales growth to fall short of our long-term algorithm this year,\u201d CEO David Gibbs said on the company\u2019s conference call.<\/p>\n
In 2022, Yum raised its long-term target to 5% unit growth, 7% system-sales growth and 8% operating profit growth.<\/p>\n
Here\u2019s what the\u00a0company reported\u00a0compared with what Wall Street was expecting, based on a survey of analysts by LSEG:<\/p>\n
Yum reported third-quarter net income of $382 million, or $1.35 per share, down from $416 million, or $1.46 per share, a year earlier.<\/p>\n
Excluding items, the company earned $1.37 per share.<\/p>\n
Net sales\u00a0rose\u00a07% to $1.83 billion.<\/p>\n
Yum\u2019s worldwide same-store sales fell 2% in the quarter, dragged down by weaker performances at KFC and Pizza Hut, which both reported same-store sales declines of 4%.<\/p>\n
The company\u2019s sales have been hurt by pressures related to \u201cgeopolitical conflicts and challenged consumer sentiment,\u201d Gibbs said in a statement.<\/p>\n
Conflict in the Middle East has weighed on Yum\u2019s results since the fourth quarter of last year. KFC\u2019s same-store sales have tumbled as much as 45% over that period in the Middle East, Indonesia and Malaysia, for example.<\/p>\n
KFC\u2019s U.S. same-store sales slid 5% this quarter. The market is KFC\u2019s second largest, trailing only China, but the chain has ceded market share to Popeyes in recent years. Last year,\u00a0Popeyes overtook KFC\u00a0as the No. 2 chicken chain in the U.S.<\/p>\n
Executives said Tuesday that KFC will focus on value in the fourth quarter.<\/p>\n
Pizza Hut, on the other hand, had a steeper decline in its international markets. The pizza chain saw its international same-store sales shrink 6%, while U.S. same-store sales fell just 1%. Pizza Hut has shifted to offering more discounts in China, India and some Middle Eastern countries, according to Gibbs.<\/p>\n
Taco Bell, the gem of Yum\u2019s portfolio, reported same-store sales growth of 4%. The launch of the Cheesy Street Chalupas, the return of the Big Cheez-It and the rollout of a $7 value meal boosted Taco Bell\u2019s sales during the quarter.<\/p>\n
Gibbs said Taco Bell led the industry in the third quarter in value perception among all fast-food consumers, helping its sales even during an industrywide slowdown.<\/p>\n<\/p>\n
Yum Brands\u00a0on Tuesday reported quarterly\u00a0earnings\u00a0and revenue that missed Wall Street\u2019s expectation as same-store sales at…<\/p>\n","protected":false},"author":0,"featured_media":5770,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-5769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/posts\/5769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/comments?post=5769"}],"version-history":[{"count":0,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/posts\/5769\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/media\/5770"}],"wp:attachment":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/media?parent=5769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/categories?post=5769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/tags?post=5769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}