Yum Brands' Earnings Miss the Mark

Yum Brands announced its third-quarter earnings this Tuesday, falling short of what Wall Street expected. Both KFC and Pizza Hut saw their same-store sales drop more than anticipated. Here's a breakdown of the numbers: - Earnings per share hit $1. 37, missing the expected $1. 41. - Revenue came in at $1. 83 billion, lower than the predicted $1. 90 billion. - Net income dipped to $382 million, down from $416 million a year ago. - Net sales did increase by 7%, reaching $1. 83 billion. The company's worldwide same-store sales declined by 2%, with KFC and Pizza Hut leading the drop at 4%. CEO David Gibbs attributed this to "political conflicts and challenged consumer sentiment, " with the Middle East conflict particularly impacting results. In the U. S. , KFC's same-store sales slid by 5%. The chain has been losing ground to Popeyes, which overtook KFC as the second-largest chicken chain last year. Pizza Hut faced a tougher time internationally, with a 6% drop in same-store sales, compared to just 1% in the U. S. Taco Bell, however, shone with a 4% growth in same-store sales. The chain's strong value perception has helped it fare well despite industry slowdowns. This story is ongoing. Stay tuned for updates.