Yum! Brands misses Q2 estimates as US demand weakens
Yum! Brands posted a miss across the board, reporting lower-than-expected Q2 results amid a slowdown in consumer spending at its key US franchises.
Revenue rose 9.6% year over year to $1.93 billion, slightly below analyst estimates of $1.94 billion. Adjusted earnings per share came in at $1.44, also missing the $1.46 expected, while same-store sales grew 2% globally, falling short of the 2.3% consensus compiled by FactSet.
The fast-food giant behind KFC, Pizza Hut, and Taco Bell posted mixed results across its brands.
Taco Bell is doing okay. The brand, which is responsible for ~38% of the company’s revenue, saw US same-store sales rise 4%, down from 5% growth a year ago. But over at KFC and Pizza Hut, things aren’t so rosy: both saw their US same-store sales slip 5%.
For KFC specifically, competition in the fried chicken arena has never been so intense, with chains like Chick-fil-A, as well as a flood of newcomers like Raising Cane’s, Dave’s Hot Chicken, and Church’s Chicken, clucking at its heels.
As a broader pullback in consumer spending and rising ingredient costs weigh on margins, Yum! and its rivals have leaned into budget meals to lure cost-conscious diners, including Taco Bell’s $5 to $9 meal boxes.
The fast-food giant behind KFC, Pizza Hut, and Taco Bell posted mixed results across its brands.
Taco Bell is doing okay. The brand, which is responsible for ~38% of the company’s revenue, saw US same-store sales rise 4%, down from 5% growth a year ago. But over at KFC and Pizza Hut, things aren’t so rosy: both saw their US same-store sales slip 5%.
For KFC specifically, competition in the fried chicken arena has never been so intense, with chains like Chick-fil-A, as well as a flood of newcomers like Raising Cane’s, Dave’s Hot Chicken, and Church’s Chicken, clucking at its heels.
As a broader pullback in consumer spending and rising ingredient costs weigh on margins, Yum! and its rivals have leaned into budget meals to lure cost-conscious diners, including Taco Bell’s $5 to $9 meal boxes.
