Yum brands On Tuesday, quarterly profits and revenues that analysts’ expectations said and KFC said that sales of people in the United States have decreased.
Here is what the company declared for the period ended on June 30 in relation to what Wall Street was expecting, on the basis of a survey of analysts by LSEG:
- Profit per share: $ 1.44 adjusted vs $ 1.46 expected
- Income: $ 1.93 billion against $ 1.94 billion expected
Yum declared a net net income in the second quarter of $ 374 million, or $ 1.33 per share, against $ 367 million, or $ 1.28 per share, a year earlier.
Excluding reflection gains and other articles, the company won $ 1.44 per share.
Net sales has climbed 10% to $ 1.93 billion. Digital transactions, which include mobile application, delivery and kiosk orders, have represented 57% of business systems sales.
Sales of Yum stores, which only follow the metric of restaurants open at least 12 months, increased by 2% during the quarter.
“I am proud that Yum Brands has delivered another solid district in a difficult consumer environment,” said CEO David Gibbs at his last conference call before his retirement. The financial director Chris Turner will succeed him as director general on October 1.
For the second quarter, KFC announced sales growth at 2%comparable stores, raised by its international restaurants. The fried chicken chain counts China as its largest market.
But at the national level, KFC’s difficulties continue. Its sales with comparable American stores have slipped 5%. Last year, the chain fell from chicken chain n ° 3 in the United States by sales at n ° 5, taking behind the rod and wingstop.
The leaders said on Tuesday that KFC’s value messaging and the new menu elements had not resonated with consumers.
Yum responded by shaking the leadership of the chain; In March, Scott Mezvinsky took the reins as CEO of KFC, and in April, Catherine Tan-Gillespie took office of president of KFC US
Globally, sales with comparable stores from Pizza Hut has dropped by 1%, injured by lower demand on its domestic market. Like KFC, Pizza Hut saw its sales with unique American stores fall by 5% during the quarter. The chain is faced with increased competition from its rivals, as many consumers are less often.
Gibbs said that US Pizza Hut sales have also wandered due to an “insufficient value message”, but the chain leadership is already aimed at this with new promotions.
Taco Bell, the jewel of the Yum portfolio, reported a 4%sales growth, helped by the reintroduction of its crisp chicken nuggets and the launch of new crisp chicken products.
Taco Bell chicken sales have climbed 50% over the past two years, according to Gibbs. The chain also obtained market share from restaurants quickly casuaux and fast food rivals.
“Most people report negative neighborhoods. We didn’t even have a negative week for Taco Bell,” said Gibbs.
However, Wall Street had higher expectations for Taco Bell. Analysts foresee that the chain would bring in global sales growth at 5.2%comparable stores, based on Streetaccount estimates.
Taco Bell’s growing international activities have reported an increase in sales at 4% comparable stores during the quarter.
The total number of Yum restaurants increased by 3%, raised by 871 location openings during the quarter. This growth was mainly motivated by the international openings of KFC.