Yum Brands Reports Earnings Growth Despite Mixed Sales Performance

Published 1 hours agoYUM

Yum Brands Reports Earnings Growth Despite Mixed Sales Performance

Yum Brands, the company behind famous fast-food chains like KFC, Taco Bell, and Pizza Hut, recently unveiled its fourth-quarter earnings report. The company saw an 8.7% rise in total revenue, reaching $1.69 billion, which surpassed analysts' predictions of $1.66 billion. Net income also increased significantly to $488 million, or $1.58 per share, compared to $334 million, or $1.04 per share, in the previous year. However, the adjusted earnings per share of $1.00 fell short of the consensus estimate of $1.13, according to data shared by TheStreet.

Despite overall same-store sales growing by 2%, this was just below the anticipated 2.1%. Notably, KFC and Taco Bell achieved same-store sales increases of 3% and 4% respectively. In contrast, Pizza Hut's same-store sales dropped by 2%, far from the expected growth of 0.6%, as reported by Fox Business. The decline in sales was particularly pronounced in international markets due to geopolitical tensions such as the Israel-Hamas conflict, leading to regional boycotts. In the U.S., KFC's same-store sales decreased by 5%, attributed to fierce competition and evolving consumer preferences.

To navigate these challenges, Yum Brands is actively diversifying its portfolio and investment opportunities for franchisees by acquiring Habit Restaurants for $375 million. This strategic move indicates Yum Brands' focus on broadening its market reach and maintaining investor interest amid fluctuating performance across its well-known brands.

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