Louisville: Yum Brands revealed its latest quarterly financial results, showing mixed outcomes as both Pizza Hut and KFC experienced declines in same-store sales.
For the second quarter, Yum Brands reported earnings per share of 1.35 dollars on an adjusted basis, surpassing analysts' expectations of 1.33 dollars, according to a survey by LSEG. However, the company's revenue fell short of forecasts, coming in at 1.76 billion dollars compared to the anticipated 1.8 billion dollars.
The company recorded a net income of 367 million, or 1.28 dollars per share, which is a decrease from the previous year's 418 million dollars, or 1.46 dollars per share. Excluding special items, Yum Brands' earnings per share were 1.35 dollars. Despite a 4 percent increase in net sales, driven by the opening of new restaurants, same-store sales across Yum Brands fell by 1 percent for the quarter.
KFC faced significant challenges, particularly in the U.S. market, where domestic same-store sales dropped by 5 percent. While there was an improvement in system sales in China, KFC's largest market, international same-store sales still saw a 3 percent decline.
Pizza Hut also struggled, with a 1 percent decrease in U.S. same-store sales and a 4 percent drop internationally.
In contrast, Taco Bell, the standout performer in Yum's portfolio, reported a 5 percent increase in same-store sales. The chain's strong presence in the U.S. and its reputation for offering value helped it withstand the effects of reduced consumer spending.
In a forward-looking move, Yum Brands announced plans on Wednesday to expand the implementation of artificial intelligence across Taco Bell drive-thru lanes. This initiative aims to roll out to hundreds of U.S. locations by the end of the year.
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