A sign is posted in front of a Taco Bell restaurant on May 01, 2024 in Richmond, California.
Justin Sullivan | Getty Images
Yum Brands on Tuesday reported a mixed quarter as both Pizza Hut and KFC reported declining same-store sales.
Shares of the company fell less 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 LSEG:
- Earnings per share: $1.35 adjusted vs. $1.33 expected
- Revenue: $1.76 billion vs. $1.8 billion expected
Yum reported second-quarter net income of $367 million, or $1.28 per share, down from $418 million, or $1.46 per share, a year earlier.
Excluding items, the company earned $1.35 per share.
Net sales rose 4% to $1.76 billion, fueled by new restaurant openings. Yum’s same-store sales fell 1% in the quarter as both Pizza Hut and KFC reported same-store sales declines of 3%.
KFC’s U.S. restaurants continued to struggle, with domestic same-store sales shrinking 5%. And although the chicken chain’s system sales picked up this quarter in China, its largest market, KFC’s overall international same-store sales fell 3%.
Pizza Hut’s U.S. same-store sales decreased 1%, while its international same-store sales declined 4%.
Taco Bell, the crown jewel of Yum’s portfolio, saw its same-store sales increase 5% in the quarter. The chain’s footprint is largely concentrated in the U.S., where its reputation for value has helped it weather the pullback in consumer spending.
On Wednesday, Yum announced plans to expand its rollout of artificial intelligence across Taco Bell drive-thru lanes to hundreds of its U.S. restaurants by the end of the year.
This story is developing. Please check back for updates.