- Yum Brands misses earnings expectations in the latest quarter, but shows a rebound in sales in China for KFC and Pizza Hut.
- Net earnings fell and shares fell on the New York Stock Exchange.
- KFC and Pizza Hut reported growth in China and the US, while Taco Bell also saw increased store sales.
Yum Brands released a financial report this Wednesday, May 3, that is not positive for investors as it speaks of quarterly earnings that failed to meet analysts’ expectations.
All this, despite an interesting improvement in sales in China for two of its most important food chains: KFC and Pizza Hut.
Yum Brands joins the list of companies, such as Procter & Gamble and Starbucks, which in their latest reports showed a recovery in sales in China.
Beyond the rebound in Asia, the truth is that the drop in earnings caused Yum Brands shares to fall more than 2.5% in the premarket on the New York Stock Exchange.
According to the Yum Brands financial report, the company had revenue of $1.65 billion, versus $1.62 billion expected. Net income, meanwhile, totaled $300 million, well below the $400 million for the same period in 2022.
According to the report, sales increased by 6 percent, hand in hand with an 8 percent rise in physical points and 45 percent in digital transactions.
financial report of Yum Brands Q12023.
Yum Brands: How it fared for KFC, Pizza Hut and Taco Bell
In the case of KFC, restaurant sales rose 9 percent on strong improvement in international markets.
China, KFC’s largest market, saw sales growth of 17 percent, positively impacting overall sales growth.
Pizza Hut, for its part, reported that sales in China grew 24 percent between January and March. China is Pizza Hut’s second largest market after the United States.
The pizza chain also had a good quarter in the US, where it saw sales increase 8 percent.
Taco Bell, meanwhile, reported an 8 percent increase in store sales in the first quarter of 2023.
Yum Brands opened 740 new stores between January and March of this year, with Taco Bell as the brand with the most openings.
Now read:
Shares of this company plummet after admitting to the threat of ChatGPT
Intel scored the worst quarterly drop in its history: what happens in the giant
Sony expects to sell 25 million PlayStation 5 this year
