Yum Brands, parent company of KFC, Pizza Hut, and Taco Bell, reported mixed first-quarter results with earnings surpassing expectations while revenue missed forecasts. The decline in Pizza Hut’s same-store sales contributed to the revenue shortfall.
Subscribe
Analysis and Opinions
Breaking News
Stock Market
Yum Brands revenue misses as Pizza Hut’s same-store sales fall 2%
Photo by Nbc 7 San Diego
Key Takeaways:
- Yum Brands reported adjusted earnings per share of $1.30, beating Wall Street estimates.
- Revenue fell short of expectations at $1.79 billion versus the anticipated $1.85 billion.
- Pizza Hut’s same-store sales declined more than expected, impacting overall performance.
- Net income decreased to $253 million from $314 million a year earlier.
- Net sales increased by 12% to $1.79 billion despite missing revenue forecasts.
Mixed First-Quarter Results for Yum Brands
Yum Brands, the parent company of fast-food giants KFC, Pizza Hut, and Taco Bell, announced its first-quarter financial results, revealing a mixed performance. The company’s adjusted earnings per share reached $1.30, slightly surpassing Wall Street’s expectations of $1.29.
Revenue Misses Expectations
Despite the earnings beat, Yum Brands reported revenue of $1.79 billion, falling short of analysts’ forecast of $1.85 billion. This revenue miss was partly attributed to a decline in Pizza Hut’s same-store sales, which fell more than anticipated during the quarter.
Impact of Pizza Hut’s Performance
Pizza Hut’s same-store sales declined more than expected, contributing to Yum Brands’ revenue shortfall. The underperformance of this division highlighted challenges within this segment of the company’s portfolio.
Decline in Net Income
The company’s net income decreased to $253 million, or 90 cents per share, down from $314 million, or $1.10 per share, in the same period a year earlier. This decline reflects increased costs and the impact of weaker sales in certain areas of the business.
Net Sales See Double-Digit Growth
Despite the revenue shortfall, Yum Brands reported a 12% increase in net sales, reaching $1.79 billion. This growth indicates strong performance in other areas of the company’s operations, offsetting some of the challenges faced by Pizza Hut.
Market Reaction
In response to the mixed earnings report, shares of Yum Brands fell less than 1% in premarket trading. Investors appeared cautious due to the revenue miss and the decline in Pizza Hut’s performance, despite the positive earnings per share results.
