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 KFC and Pizza Hut slid more than expected. \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 […]<\/p>\n","protected":false},"author":0,"featured_media":12008,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-12007","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/12007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=12007"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/12007\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/12008"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=12007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=12007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=12007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}