Yum Brands reported disappointing quarterly earnings and revenue, largely attributed to challenges faced by Pizza Hut and KFC in attracting customers. Pre-market trading saw a more than 4% decline in the company’s shares.
Here’s a breakdown of Yum’s performance compared to analysts’ expectations:
– Earnings per share: Adjusted at $1.15 versus the expected $1.20
– Revenue: $1.6 billion, falling short of the anticipated $1.71 billion
Yum recorded a first-quarter net income of $314 million, or $1.10 per share, up from $300 million, or $1.05 per share, from the previous year. Adjusted for investment losses and other factors, the company’s earnings were $1.15 per share.
Net sales experienced a 3% decrease to $1.6 billion. Furthermore, Yum’s global same-store sales fell 3% in the quarter, missing estimates of a 0.2% growth.
Among Yum’s major brands, only Taco Bell saw a rise in same-store sales, increasing by 1% during the quarter. However, KFC and Pizza Hut reported declines. KFC’s same-store sales fell by 2%, while Pizza Hut experienced a notable 7% drop.
Despite these challenges, Yum’s digital business showed promising growth, accounting for over 50% of sales for the first time. Additionally, the company expanded its global footprint by 6% in the quarter, with the opening of 808 new restaurants.
