A sign is placed in front of a Taco Bell restaurant on May 1, 2024 in Richmond, California.
Justin Sullivan | Getty Images
Yum Brands A mixed quarter was reported on Tuesday as both Pizza Hut and KFC reported declining same-store sales.
Here's what the company reported compared to what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: $1.35 adjusted vs. $1.33 expected
- Revenue: $1.76 billion versus the $1.8 billion forecast
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 Yum's comparable-store sales rose 4% to $1.76 billion, driven by new restaurant openings. Yum's comparable-store sales fell 1% in the quarter as both Pizza Hut and KFC reported comparable-store sales declines of 3%.
KFC's U.S. restaurants continued to struggle, with local store sales down 5%. And while the chicken chain's systemwide sales rebounded this quarter in China, its largest market, KFC's total international sales at local stores fell 3%.
Pizza Hut's U.S. same-store sales declined 1%, while its international sales declined 4%.
Taco Bell, the crown jewel of Yum's portfolio, saw its comparable-store sales rise 5% in the quarter. The chain's presence is concentrated primarily in the United States, where its reputation for good value has helped it weather the slump in consumer spending.
On Wednesday, Yum announced plans to expand its deployment of artificial intelligence in 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.
