Yum! Brands Q3 earnings miss estimates

Investing.com -- Yum! Brands, Inc. (YUM) reported third-quarter earnings that fell short of analyst expectations, sending shares down 1% in early trading. The fast food restaurant operator posted adjusted earnings per share of $1.37, missing the consensus estimate of $1.41.

The company, which owns KFC, Taco Bell, and Pizza Hut, saw worldwide system sales grow 1% year-over-year, excluding foreign currency translation effects. This growth was driven by a 5% increase in total units, reaching 59,664 restaurants globally.

Taco Bell emerged as a bright spot, with U.S. same-store sales rising 4% and system sales growing 5%. KFC International continued its expansion, growing units by 9% YoY. However, Pizza Hut struggled, with system sales declining 1% and same-store sales dropping 4%.

"I'm incredibly proud of how our teams have navigated such a complex consumer environment to deliver 3% Core Operating Profit growth this quarter," said CEO David Gibbs. He highlighted the strength of Taco Bell U.S. in outperforming QSR competition and KFC International's impressive unit growth.

Digital sales remained robust, exceeding $8 billion with a mix of over 50%. However, the company noted that sales were impacted by pressures relating to geopolitical conflicts and challenged consumer sentiment.

Yum! Brands (NYSE:YUM )' GAAP operating profit grew 1%, while core operating profit increased 3%. The company's reported EPS of $1.35 reflected a $0.14 negative impact from a higher current year tax rate and lower investment income compared to the previous year.

Source: Investing.com