Yum Brands on Tuesday reported quarterly earnings and revenue that missed Wall Street’s expectation as same-store sales at KFC and Pizza Hut slid more than expected.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $1.37 adjusted vs. $1.41 expected
- Revenue: $1.83 billion vs. $1.90 billion expected
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.
Excluding items, the company earned $1.37 per share.
Net sales rose 7% to $1.83 billion.
Yum’s 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%.
The company’s sales have been hurt by pressures related to “political conflicts and challenged consumer sentiment,” CEO David Gibbs said in a statement. Conflict in the Middle East has weighed on Yum’s results since the fourth quarter of last year.
KFC’s U.S. same-store sales slid 5% this quarter. The market is KFC’s second-largest, trailing only China, but the chain has ceded market share to Popeyes in recent years. Last year, Popeyes overtook KFC as the number two chicken chain in the U.S.
Pizza Hut, on the other hand, saw 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%.
Taco Bell, the gem of Yum’s portfolio, reported same-store sales growth of 4%. Executives have previously said that the chain has a strong perception of value from consumers, helping its sales even during an industry-wide slowdown.
This story is developing. Please check back for updates.