A Pizza Hut store is seen in Austin, Texas on November 01, 2023.
Brandon Bell | getty images
Here’s how the company reported compared to Wall Street’s expectations, based on a survey of LSEG analysts:
- Earnings per share: $1.15 adjusted vs. $1.20 expected
- Revenue: $1.6 billion vs. $1.71 billion expected
Yum reported first-quarter net income of $314 million, or $1.10 per share, up from $300 million, or $1.05 per share, a year earlier.
Excluding investment losses and other items, the company earned $1.15 per share.
gross sales Fell 3% to $1.6 billion. Yum’s global same-store sales also fell 3% in the quarter, missing StreetAccount’s estimate of 0.2% same-store sales growth.
Of Yum’s three biggest brands, only Taco Bell reported same-store sales growth. The Mexican-inspired series grew the metric 1% during the quarter. Taco Bell’s US locations reported a 2% increase in same-store sales, while its international business reported a 2% decline.
KFC’s same-store sales fell 2% in the quarter. The biggest declines came in the US, where they shrank 7%. However, the chicken chain’s international division saw same-store sales decline only 2%, due to growth in China, its largest market. A year earlier, KFC’s quarterly same-store sales were up 9%.
Pizza Hut reported that same-store sales declined 7% due to decreased demand in its domestic market and internationally. The pizza chain’s U.S. restaurants reported a 6% decline, while its international division reported an 8% decline. The chain faced tough comparisons to the year-ago period, when Pizza Hut reported a 7% increase in same-store sales due to its new Melts.
The company’s digital business was one of the few bright spots of the quarter. Yum said its digital sales accounted for more than 50% of sales for the first time.
Yum’s global footprint grew 6% in the quarter due to the opening of 808 new restaurants.
