Yum brands Wednesday, mixed quarterly results, sales of Hut pizza, sales of stores with comparable stores decreased more than expected.
The actions of the company fell by more than 1% in the trade prior to the market.
Here is what the company reported for the first quarter of what Wall Street was expecting, on the basis of a survey of LSEG analysts:
- Profit by action: $ 1.30 adjusted vs $ 1.29 expected
- Income: $ 1.79 billion against $ 1.85 billion expected
Yum declared a net profit in the first quarter of $ 253 million, or 90 cents per share, against $ 314 million, or $ 1.10 per share, a year earlier.
By excluding the costs to move the American head office of KFC to Texas and other articles, the company won $ 1.30 per share.
Net sales climbed 12% to $ 1.79 billion. In all its brands, sales with comparable stores in Yum increased by 3%.
Again, Pizza Hut was the Laggard this quarter. The pizza chain in difficulty has seen its sales with comparable stores decrease by 2%, a lower drop than the decrease of 0.1% provided by the Streetaccount estimates. Significant Pizza Hut store sales slipped 5%, while metric was stable in international markets.
“In the United States, sales began in January and improved until February and March,” CEO David Gibbs said at the company’s call conference. “With the last weeks showing sequential gains in income and transactions, the American company has been faced with an intense competitive environment to stimulate momentum.”
Taco Bell, the Yum portfolio’s show, reported a 9%store sales, exceeding 8%estimates. The chain has seen traffic growth in all income cohorts and menu elements like steak and queso crunchwrap Sliders and Crispy Chicken Nuggets attracted guests to its restaurants.
“I know it is a difficult operational environment for everyone in industry,” said Gibbs. “It is probably an environment that promotes Taco Bell, and that’s what you see there, shooting all the cylinders.”
Sales with comparable KFC stores increased by 2%, beating 1.4%estimates. Most of the sales chain sales come from the outside of American China, its largest market, has seen 3%systems growth.
But like Pizza Hut, KFC American affairs have difficulty. National chain store sales decreased 1% during the quarter. Rival Wingstop And the increase in rods exceeded KFC American sales, pushing the Yums chain to the fifth domestic chicken chain, according to the 2025 circana classification of American restaurants by sale.
Yum recently hit Catherine Tan-Gillespie, the former Marketing Director of KFC US, to lead the national chain company.
Digital orders, which include those on mobile applications and store kiosks, represented 55% of the total Yum sales in this quarter.
Yum does not expect any significant impact on its global supply channel for commercial conflicts triggered by President Donald Trump’s prices. In addition, the company has also seen any consumer’s backlash as an American brand operating abroad, even as tensions between the United States and its key China market.
“We have not seen, and we obviously monitor this, any anti-American feeling of consumers,” said Gibbs.
For the whole year, Yum reiterated that it would be able to achieve its long -term objective of the growth of operational profit of 8% basic. However, the company provides for lower profits growth in the first half of 2025, partly thanks to occasional expenses, such as a global franchise convention in Australia.
At the end of March, Gibbs announced its intention to retire in the first quarter of 2026. The board of directors of the company is currently looking for its replacement.