A Pizza Hut retailer is seen on November 01, 2023 in Austin, Texas. Pizza Hut’s third-quarter income fell wanting analysts’ expectations for same-store gross sales.
Brandon Bell | Getty Photographs
Yum Manufacturers on Wednesday reported blended quarterly outcomes as Pizza Hut’s same-store gross sales fell greater than anticipated.
Shares of the corporate fell lower than 1% in premarket buying and selling.
Here is what the corporate reported for the primary quarter in contrast with what Wall Road was anticipating, based mostly on a survey of analysts by LSEG:
- Earnings per share: $1.30 adjusted vs. $1.29 anticipated
- Income: $1.79 billion vs. $1.85 billion anticipated
Yum reported first-quarter web earnings of $253 million, or 90 cents per share, down from $314 million, or $1.10 per share, a 12 months earlier.
Excluding prices to transfer KFC’s U.S. headquarters to Texas and different gadgets, the corporate earned $1.30 per share.
Internet gross sales climbed 12% to $1.79 billion. Throughout all of its manufacturers, Yum’s same-store gross sales rose 3%.
As soon as once more, Pizza Hut was the laggard this quarter. The struggling pizza chain noticed its same-store gross sales shrink 2%, a steeper decline than the 0.1% lower projected by StreetAccount estimates. Pizza Hut’s U.S. same-store gross sales slid 5%, whereas the metric was flat in worldwide markets.
Taco Bell, the standout of Yum’s portfolio, reported same-store gross sales progress of 9%, topping estimates of 8%.
KFC’s same-store gross sales rose 2%, beating estimates of 1.4%. The majority of the fried hen chain’s gross sales come from exterior the U.S. China, its largest market, noticed system gross sales progress of three%.
However like Pizza Hut, KFC’s U.S. enterprise has been struggling. The chain’s home same-store gross sales shrank 1% within the quarter. Rival hen chains Wingstop and Elevating Cane’s have overtaken KFC’s U.S. gross sales, in keeping with Circana’s 2025 rating of U.S. eating places by gross sales.
Digital orders, which embrace these on cell apps and in-store kiosks, accounted for 55% of Yum’s whole gross sales this quarter.
In late March, CEO David Gibbs introduced plans to retire within the first quarter of 2026. The corporate’s board is presently looking for his substitute.
