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Yum Brands on Tuesday reported quarterly earnings and income that missed analysts’ expectations as Pizza Hut and KFC reported U.S. same-store gross sales declines.
This is what the corporate reported for the period ended June 30 in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by LSEG:
- Earnings per share: $1.44 adjusted vs. $1.46 anticipated
- Income: $1.93 billion vs. $1.94 billion anticipated
Yum reported second-quarter web revenue of $374 million, or $1.33 per share, up from $367 million, or $1.28 per share, a yr earlier.
Excluding refranchising good points and different objects, the corporate earned $1.44 per share.
Internet gross sales climbed 10% to $1.93 billion. Digital transactions, which embrace cellular app, supply and kiosk orders, accounted for 57% of the corporate’s system gross sales.
Yum’s same-store gross sales, which solely tracks the metric at eating places open at the least 12 months, rose 2% throughout the quarter.
KFC reported same-store gross sales progress of two%, lifted by its worldwide eating places. The fried hen chain counts China as its greatest market.
However domestically, KFC’s struggles proceed. Its U.S. same-store gross sales slid 5%. Final yr, the chain dropped from the No. 3 hen chain within the U.S. by gross sales to No. 5, falling behind Elevating Cane’s and Wingstop. In April, Catherine Tan-Gillespie took over as president of KFC U.S., tasked with turning round its gross sales stoop.
Globally, Pizza Hut’s same-store gross sales fell 1%, harm by weaker demand in its residence market. Like KFC, Pizza Hut noticed its U.S. same-store gross sales fall 5% throughout the quarter. The chain is dealing with elevated competitors from its rivals as many customers dine out much less typically.
Taco Bell, the jewel of Yum’s portfolio, reported same-store gross sales progress of 4%. The chain’s rising worldwide enterprise additionally noticed same-store gross sales improve 4% throughout the quarter.
Yum’s whole restaurant depend rose 3%, lifted by 871 location openings within the quarter. That progress was pushed primarily by worldwide KFC openings.
This story is creating. Please test again for updates.