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Key Takeaways
- Taco Bell sales help offset weakness in other Yum! Brands franchises, boosting shares of the company.
- Same-store sales at Taco Bell advanced 4%, while they dropped 4% at KFC and Pizza Hut.
- CEO David Gibbs said the fast-food restaurant chain’s results were impacted by geopolitical conflicts and a weak consumer environment.
Shares of Yum! Brands (YUM) advanced as the restaurant chain operator got a boost from its Taco Bell franchise.
In the third quarter, Taco Bell same-store sales rose 4%. That helped offset a drop of 4% at both its KFC and Pizza Hut locations. Overall, Yum! Brands reported same-store sales were down 2% worldwide.
Earnings per share (EPS) came in at $1.37, with revenue up 7% to $1.83 billion. Both missed estimates.
CEO David Gibbs said the company navigated “a complex consumer environment.” He added that sales were impacted by “pressures relating to geopolitical conflicts and challenged consumer sentiment.”
Gibbs also said that Taco Bell “significantly outperformed” competition from rival Restaurant Brands International (QSR). The owner of Burger King posted consolidated comparable sales grew just 0.3%.
Gibbs noted that looking at sales trends, the company was optimistic Taco Bell’s momentum is continuing into the current quarter.
Yum! Brands shares are up about 6% so far in 2024.
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