Sign for the food brand Pizza Hut on 30th May 2022 in Birmingham, United Kingdom. (photo by Mike Kemp/In Pictures via Getty Images)
Mike Kemp | In Pictures | Getty Images
Yum Brands on Wednesday reported quarterly revenue that fell short of analysts’ expectations, hurt by weak same-store sales growth at Pizza Hut.
Shares of the company fell more than 1% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.44 adjusted vs. $1.28 expected
- Revenue: $1.71 billion vs. $1.77 billion expected
The restaurant company reported third-quarter net income of $416 million, or $1.46 per share, up from $331 million, or $1.14 per share, a year earlier.
Excluding items, Yum earned $1.44 per share.
Net sales rose 4% to $1.71 billion. The company set a new record for digital sales growth, Yum CEO David Gibbs said in a statement.
Yum’s same-store sales grew 6% in the quarter, helped by strong sales at Taco Bell’s U.S. locations and KFC’s international restaurants.
KFC’s overall same-store sales increased 6% in the quarter, beating StreetAccount estimates of 5.6%. The fried chicken chain’s international division reported same-store sales growth of 7%, boosted by strong growth in China, its largest market.
But in the U.S., its second-largest market, KFC saw flat same-store sales growth. The chain has struggled in its home market recently. It has lost market share to Chick-fil-A and Restaurant Brands International’s Popeyes, which recently overtook KFC as the number-two chicken chain in the U.S.
Taco Bell reported same-store sales growth of 8%, topping StreetAccount estimates of 6.3%.
Pizza Hut’s same-store sales rose just 1%, falling short of StreetAccount estimates of 1.7%.
The company’s total restaurant footprint grew 6% as it opened more than 1,100 locations during the quarter.