Sure thing, here it goes:
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So, I guess Yum Brands had a bit of a mixed bag when they dropped their latest financial results. On one hand, you’ve got Pizza Hut and KFC in the U.S. not really lighting the world on fire—same-store sales were actually sliding. But, hey, that’s life, right? Here’s how the numbers shook out for the quarter ending June 30.
First off, those earnings. They clocked in with $1.44 per share. Analysts were thinking it’d be more like $1.46. Just a tiny “whoops” moment there. Revenue was at $1.93 billion, which again was a smidge under that $1.94 billion everyone was hoping for. Close, but no cigar.
Net income? Went up, actually. Hit $374 million, better than last year’s $367 million. Kinda feels like a win there, right? Minus a few things like, say, refranchising gains, and they hit that $1.44 per share again.
Sales overall were up by 10%. And get this: a big chunk — 57% to be exact — of sales came from digital. Seriously, phones and kiosks are basically running the show now.
Same-store sales—aka the lifeline—went up 2%. That’s for places open more than a year, if you’re keeping track. David Gibbs, the soon-to-retire CEO, seemed pretty happy about it. Said it was strong considering the economy felt tougher than a well-done steak. Chris Turner’s set to take the CEO role soon. Good luck, dude!
So, let’s dig into KFC. Globally, they’re up 2%, thanks a ton to international spots. China’s all-in on fried chicken apparently. But back home? Bit of a rough go. U.S. sales dropped 5%, and last year they fell from the third-biggest chicken player in the U.S. to fifth. Ouch.
There’s chatter about value messaging and menu tweaks missing the mark. March brought Scott Mezvinsky as the new boss, and in April, Catherine Tan-Gillespie stepped in for the U.S. president role. Fingers crossed they shake things up.
Then there’s Pizza Hut. Globally, same-store sales dipped 1%, and the U.S. was down 5%. People just aren’t feeling the need for speed with those pizzas, I guess. They’re working on shifting gears with new deals.
Betcha thought I’d forgotten Taco Bell. Nope! It’s Yum’s shining star with a 4% rise in sales. Crispy Chicken Nuggets—in case you haven’t tried them yet—are back with some new buddies on the menu. Chicken sales soared 50% over the past two years. Crazy, right?
David Gibbs even boasted about Taco Bell not having a bad week while others struggle. Still, analysts wanted more, like a 5.2% bump globally.
Opening new spots? Heck yeah. Yum’s rocking 871 new locations. KFC’s pretty much leading that international charge.
And that’s the gist of it. Sometimes you win, sometimes you, well, don’t. Life’s just one big pizza slice away from unexpected flavors, I guess.
