• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Yum Brands earnings miss estimates as KFC, Pizza Hut report same-store sales declines
Editor's Pick

Yum Brands earnings miss estimates as KFC, Pizza Hut report same-store sales declines

by November 6, 2024
by November 6, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

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.

“The complex consumer environment that exists in many markets around the globe has contributed to pronounced regional sales variations, which has caused our system-sales growth to fall short of our long-term algorithm this year,” CEO David Gibbs said on the company’s conference call.

In 2022, Yum raised its long-term target to 5% unit growth, 7% system-sales growth and 8% operating profit growth.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

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 “geopolitical conflicts and challenged consumer sentiment,” 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 same-store sales have tumbled as much as 45% over that period in the Middle East, Indonesia and Malaysia, for example.

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 No. 2 chicken chain in the U.S.

Executives said Tuesday that KFC will focus on value in the fourth quarter.

Pizza Hut, on the other hand, had 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%. Pizza Hut has shifted to offering more discounts in China, India and some Middle Eastern countries, according to Gibbs.

Taco Bell, the gem of Yum’s portfolio, reported same-store sales growth of 4%. The launch of the Cheesy Street Chalupas, the return of the Big Cheez-It and the rollout of a $7 value meal boosted Taco Bell’s sales during the quarter.

Gibbs said Taco Bell led the industry in the third quarter in value perception among all fast-food consumers, helping its sales even during an industrywide slowdown.

This post appeared first on NBC NEWS
You Might Also Like
  • Nvidia CEO Huang says AI has to do ‘100 times more’ computation now than when ChatGPT was released
  • It wasn’t the endless shrimp that doomed Red Lobster. How private equity pinched the seafood chain.
  • Inside the $1 billion berry startup backed by Ray Dalio’s family office
  • Southwest Airlines is now limiting a service that lets passengers buy a better spot in the boarding line
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Amazon gets FAA approval for new delivery drone as it begins tests in Arizona
next post
The SCTR Report: What Coinbase’s Dramatic Price Surge Means For Your Portfolio

You may also like

Actility Selects iBASIS and Sequans to Deploy LTE-M Solutions With...

March 3, 2023

How America’s chief consumer-protection agency came into the Trump administration’s...

February 13, 2025

Deutsche Telekom and T‑Mobile US introduce Network APIs and a...

February 27, 2023

Disney to limit Marvel movie releases each year as it...

May 9, 2024

E.l.f. Beauty to acquire Hailey Bieber skin care brand Rhode...

May 29, 2025

Semtech’s LoRa® Devices Optimize Building Management Systems in U.S.

December 7, 2022

The U.S. economy grew at a 3.3% pace in the...

January 27, 2024

Baby boomers and their cash are driving the housing market...

July 9, 2023

And they’re off! On the sidelines of a pricier Derby,...

May 5, 2024

Advertisers boost spending at retailers such as Walmart and Amazon...

May 25, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025
    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp up Max production, CEO says

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025
    • Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?

      May 29, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,764 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,470 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,450 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,430 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,307 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,105)
    • Investing (538)
    • Stock (2,578)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’...

      May 30, 2025
    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp...

      May 29, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,105)
    • Investing (538)
    • Stock (2,578)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    ‘Barbenheimer’ gets off to hot start...

    July 22, 2023

    Relentless heat wave has people cranking...

    July 24, 2023

    The great American jobs machine keeps...

    February 3, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here