Taco Bell, KFC power Yum Brands' quarterly profit beat
(Reuters) - Yum Brands Inc (YUM.N) topped Wall Street estimates for third-quarter revenue and profit on Wednesday, as strong sales at its KFC and Taco Bell chains helped counter continued weakness at Pizza Hut.
U.S. fast food chains, including Yum Brands and McDonald’s Corp (MCD.N), are fiercely competing to retain and add more customers with cheaper menu items, discounts and new breakfast menus.
Taco Bell, Yum’s fastest-growing brand, recorded a 5 percent rise in same-restaurant sales, beating expectations of a 3 percent rise.
Same-store sales also rose 3 percent at KFC, topping analysts’ estimate.
Pizza Hut, however, remained a dark spot for the company, with same-restaurant sales falling 1 percent in the quarter, due to declines in the United States and China, where it faces intense competition.
Excluding one-time items, Yum earned $1.04 per share, beating analysts’ average expectation of 83 cents, according to Refinitiv estimates.
Yum’s net income rose to $454 million, or $1.40 per share, in the three months ended Sept. 30, from $418 million, or $1.18 per share, a year earlier
Total revenue fell 3 percent to $1.39 billion, but beat analysts’ average estimate of $1.38 billion.
Reporting by Aishwarya Venugopal in Bengaluru; Editing by Arun Koyyur and Saumyadeb Chakrabarty
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