Yum Brands disappoints as KFC, Taco Bell and Pizza Hut fall short of same-store sales expectations

Yum Brands disappoints as KFC, Taco Bell and Pizza Hut fall short of same-store sales expectations

KFC and Taco Bell eating places alongside 118th Avenue in Edmonton, on January 21, 2024, in Edmonton, Alberta, Canada.

Artur Widak | Nurphoto | Getty Images

Yum Brands on Wednesday reported quarterly earnings and income that missed analysts’ expectations as KFC, Taco Bell and Pizza Hut all posted weaker-than-expected sales.

Yum is the third international restaurant big to report disappointing income for the final three months of 2023. Starbucks and McDonald’s each missed Wall Street’s expectations, citing the Israel-Hamas war amongst their head winds.

Yum’s inventory fell greater than 1% in premarket buying and selling.

Here’s what Yum Brands reported in contrast with what Wall Street was anticipating, primarily based on a survey of analysts by LSEG, previously recognized as Refinitiv:

  • Earnings per share: $1.26 adjusted vs. $1.40 anticipated
  • Revenue: $2.04 billion vs. $2.11 billion anticipated

Yum reported fourth-quarter web earnings of $463 million, or $1.62 per share, up from $371 million, or $1.29 per share, a 12 months earlier.

Excluding gadgets, the restaurant big earned $1.26 cents per share. The firm stated its quarterly tax price fluctuated, dragging its earnings down by 23 cents per share.

Net sales rose 1% to $2.04 billion. The firm’s international same-store sales elevated 1% as effectively.

Pizza Hut reported same-store sales declines of 2%, lacking expectations of 0.6% development. The pizza chain’s U.S. same-store sales shrank 4%, whereas its worldwide same-store sales have been flat.

KFC’s same-store sales rose 2%, coming in under StreetAccount estimates of 4.7%.

Even Taco Bell, normally the gem of Yum’s portfolio, underperformed Wall Street’s expectations. The Mexican-inspired chain reported same-store sales development of 3%, lacking StreetAccount estimates of 3.8%. A 12 months earlier, the chain reported same-store sales development of 11%, fueled by the everlasting return of its cult-favorite Mexican Pizza.

In 2024, Yum plans to cross a number of main milestones for its international footprint. Yum’s footprint will surpass 60,000 places, CEO David Gibbs stated in a press release, together with a KFC footprint of greater than 30,000 eating places and a Pizza Hut tally of past 20,000.

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