Yum Brands Q1 Results: KFC parent reports drop in global same-store sales on weak demand

Shares of Yum Brands were down 3.7% in premarket after the Pizza Hut parent joined coffee giant Starbucks in recording its first drop in total same-store sales in about three years.

"As expected, same-store sales were pressured this quarter, but we are encouraged by strong two-year same-store sales growth and positive momentum exiting the quarter," said CEO David Gibbs.

Yum Brands' total fell nearly 3% to $1.60 billion in the first-quarter ended March 31, missing analysts' estimates of $1.71 billion, as per LSEG data.

The company's worldwide same-store sales fell 3% in the first-quarter, while analysts were expecting a growth of 0.04%.

The launch of KFC's first-ever loyalty program in the reported quarter failed to drum up demand for the fast food giant, as consumers continued to look for cheaper alternatives, including meals at home.

This comes in contrast to results at pizza chain Domino's , which reaped benefits from a revamped loyalty program that has kept consumers hooked over the last two quarters.

Global same-store sales at its KFC restaurants fell 2%, while that of Pizza Hut dropped 7%.

Taco Bell posted an increase of 1%, compared with estimates of 2.83%.