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Yum Brands on Tuesday reported quarterly earnings and revenue that missed analysts’ expectations as Pizza Hut and KFC reported U.S. same-store sales declines.
Here’s what the company reported for the period ended June 30 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $1.44 adjusted vs. $1.46 expected
- Revenue: $1.93 billion vs. $1.94 billion expected
Yum reported second-quarter net income of $374 million, or $1.33 per share, up from $367 million, or $1.28 per share, a year earlier.
Excluding refranchising gains and other items, the company earned $1.44 per share.
Net sales climbed 10% to $1.93 billion. Yum’s same-store sales rose 2% during the quarter.
KFC reported same-store sales growth of 2%, lifted by its international restaurants. The fried chicken chain counts China as its biggest market.
But domestically, KFC’s struggles continue. Its U.S. same-store sales slid 5%. Last year, the chain dropped from the No. 3 chicken chain in the U.S. by sales to No. 5, falling behind Raising Cane’s and Wingstop. In April, Catherine Tan-Gillespie took over as president of KFC U.S., tasked with turning around its sales slump.
Globally, Pizza Hut’s same-store sales fell 1%, hurt by weaker demand in its home market. Like KFC, Pizza Hut saw its U.S. same-store sales fall 5% during the quarter. The chain is facing increased competition from its rivals as many consumers dine out less often.
Taco Bell, the jewel of Yum’s portfolio, reported same-store sales growth of 4%. The chain’s growing international business also saw same-store sales increase 4% during the quarter.
This story is developing. Please check back for updates.
