Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2022 11 02T110617Z 1 LYNXMPEIA10FD RTROPTP 4 YUM BRANDS RESULTS - Business Express
FILE PHOTO: People walk by a Taco Bell and Pizza Hut, subsidiaries of Yum! Brands, Inc. in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly

Yum beats sales estimates as customers flock to KFC, Taco Bell deals

By Uday Sampath Kumar

(Reuters) -Yum Brands Inc beat Wall Street estimates for quarterly comparable sales on Wednesday, as the company’s KFC value deals and $2 Taco Bell burritos pulled in more inflation-weary consumers to its restaurants.

Yum’s shares rose 1.6% in morning trading.

Menu price hikes at dine-in restaurants to keep up with surging costs have pushed consumers who want to eat out, but not exhaust their wallets, to fast food chains like KFC and Taco Bell where meals are more affordable and promotions more frequent.

Yum said new value-deals at KFC, such as the reboot of its $5 Mac & Cheese bowls and a $6 2-piece drum and thigh combo, helped push global same-store sales at the restaurant chain up 7% in the third quarter.

Last week, McDonald’s Corp also beat quarterly comparable sales and profit estimates helped by an increase in restaurant traffic owing to cheaper-priced menu offerings.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

“Value does seem to be more of a factor today than it might have been six or nine months ago,” Yum Chief Executive Officer David Gibbs said on an analyst call.

Yum, which also owns the Pizza Hut chain, said global comparable sales rose 5% in the reported quarter, compared to analysts’ average estimate of a 3.2% increase, according to Refinitiv IBES data.

Same-store sales rose 6% at Taco Bell in the quarter, helped by new burrito additions to its $2 menu.

Analysts at Cowen & Co said the return of Taco Bell’s popular “Mexican Pizza” in September will likely boost U.S. sales even more in the current quarter.

Excluding one-time items, Yum Brands earned $1.09 per share, missing estimates of $1.14 per share, with the company blaming the hit from a stronger dollar and a loss in profits from the exit of its KFC business in Russia.

(Reporting by Mehr Bedi and Uday Sampath in Bengaluru; Editing by Shailesh Kuber)

Recent Post: