Yum Brands (NYSE:YUM) on Wednesday reported quarterly earnings and revenue that missed analysts’ expectations as KFC, Taco Bell and Pizza Hut all posted weaker-than-expected sales.
Yum is the third global restaurant giant to report disappointing revenue for the last three months of 2023. Starbucks (NASDAQ:SBUX) and McDonald’s (NYSE:MFC) both missed Wall Street’s expectations, citing the Israel-Hamas war among their head winds.
Yum reported fourth-quarter net income of $463 million, or $1.62 per share, up from $371 million, or $1.29 per share, a year earlier.
Excluding items, the restaurant giant earned $1.26 cents per share. The company said its quarterly tax rate fluctuated, dragging its earnings down by 23 cents per share.
Net sales rose 1% to $2.04 billion. The company’s global same-store sales increased 1% as well.
Pizza Hut reported same-store sales declines of 2%, missing expectations of 0.6% growth. The pizza chain’s U.S. same-store sales shrank 4%, while its international same-store sales were flat.
KFC’s same-store sales rose 2%, coming in below estimates of 4.7%.
Even Taco Bell, normally the gem of Yum’s portfolio, underperformed Wall Street’s expectations. The Mexican-inspired chain reported same-store sales growth of 3%, missing estimates of 3.8%. A year earlier, the chain reported same-store sales growth of 11%, fueled by the permanent return of its cult-favorite Mexican Pizza.
YUM shares sprang up $4.12, or 3.2%, to $131.39.