Yum’s sales figure edges up, but falls short of expectations
LOUISVILLE, Ky. (AP) — Yum reported a key sales figure for the second quarter that fell short of Wall Street expectations, with results mixed for its Taco Bell, KFC and Pizza Hut chains.
The Louisville, Kentucky company said sales rose 1 percent at restaurants open at least a year. Analysts expected an increase of 2 percent.
Same-store sales at Pizza Hut dipped 1 percent, while both KFC and Taco Bell posted 2 percent increases.
In the U.S., the company has been promoting deals like a $1 Triple Melt Burrito to attract customers, which helped drive up sales. At Pizza Hut, the company said sales at established locations were flat as it didn’t promote value offerings heavily enough.
The company is also trying to make it more convenient for people to get its food. Yum cut a deal with Grubhub earlier this year to expand delivery nationwide. In the same month, one day after the NFL cut ties with Papa John’s, Yum announced a multiyear marketing agreement with the league.
Yum Brands Inc. posted earnings of $321 million, or 97 cents per share. Excluding nonrecurring items, per-share earnings were 82 cents, or 8 cents better than industry analysts had expected, according to a survey by FactSet.
The Louisville, Kentucky, company earned $206 million, or 58 cents per share, in the same period last year.
Total revenue slipped to $1.37 billion, from $1.45 billion, about in line with projections.
Shares edged up almost 1 percent to $80.19.