https://auntresodamid.com/iJugHxINePLH1VY/96561
Yum Brands earnings miss estimates as Pizza Hut, KFC struggle in the U.S.

Yum Brands earnings miss estimates as Pizza Hut, KFC struggle in the U.S.

Sharing is caring!


Piotr Swat | Lightrocket | Getty Images

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. Digital transactions, which include mobile app, delivery and kiosk orders, accounted for 57% of the company’s system sales.

Yum’s same-store sales, which only tracks the metric at restaurants open at least 12 months, 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.

Yum’s total restaurant count rose 3%, lifted by 871 location openings in the quarter. That growth was driven primarily by international KFC openings.

This story is developing. Please check back for updates.



Source link

Oval@3x 2

Don’t miss latest news!

Select list(s):

We don’t spam! Read our [link]privacy policy[/link] for more info.

🕶 Relax!

Put your feet up and let us do the hard work for you. Sign up to receive our latest news directly in your inbox.

Select Your Choice:

We’ll never send you spam or share your email address.
Find out more in our Privacy Policy.

🕶 Relax!

Put your feet up and let us do the hard work for you. Sign up to receive our latest news directly in your inbox.

Select Your Choice:

We’ll never send you spam or share your email address.
Find out more in our Privacy Policy.

Sharing is caring!

Read More :-  Meta scraps fact checking program, is bringing back political content
Scroll to Top