KFC and Taco Bell restaurants along 118th Street in Edmonton, on January 21, 2024, in Edmonton, Alberta, Canada.
Artur Vidak | norphoto | Getty Images
Yum Brands on Wednesday reported quarterly earnings and revenue that beat analysts' expectations, as KFC, Taco Bell and Pizza Hut reported weaker-than-expected sales.
Yum is the third global restaurant giant to report disappointing revenue for the final three months of 2023. Starbucks and McDonald's both beat Wall Street expectations, citing the war between Israel and Hamas among the headwinds.
Yum stock fell more than 1% in pre-market trading.
This is what Yum Brands reported Compared to what Wall Street expected, based on a poll of analysts conducted by LSEG, formerly known as Refinitiv:
- Earnings per share: $1.26 was revised against $1.40 expected
- he won: $2.04 billion versus $2.11 billion expected
Yum reported fourth-quarter net income of $463 million, or $1.62 per share, compared with $371 million, or $1.29 per share, a year earlier.
Excluding items, the restaurant giant earned 1.26 cents per share. The company said its quarterly tax rate fluctuated, causing its earnings to decline by 23 cents per share.
Net sales It rose 1% to $2.04 billion. The company's global store sales rose 1% as well.
Pizza Hut reported same-store sales fell 2%, missing expectations for 0.6% growth. US same-store sales contracted 4%, while international same-store sales remained flat.
KFC's same-store sales rose 2%, below StreetAccount's estimate of 4.7%.
Even Taco Bell, usually the jewel of Yum's portfolio, underperformed Wall Street expectations. The Mexican-inspired chain posted same-store sales growth of 3%, beating StreetAccount estimates of 3.8%. A year ago, the chain reported 11% same-store sales growth, driven by the perennial return of its favorite Mexican pizza.
In 2024, Yum plans to achieve several major milestones in its global footprint. Yum's footprint will exceed 60,000 locations, including a KFC footprint of more than 30,000 restaurants and Pizza Hut of more than 20,000 restaurants, CEO David Gibbs said in a statement.
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