Taco Bell, KFC sales power Yum's results beat as Pizza Hut lags
Reuters
Published Oct 28, 2021 07:12AM ET
Updated Oct 28, 2021 01:33PM ET
By Deborah Mary Sophia
(Reuters) - Taco Bell owner Yum Brands Inc beat Wall Street estimates for quarterly revenue and profit on Thursday, as strong demand for its fried chicken and tacos cushioned the blow from a slowdown in sales at its Pizza Hut chain.
The company also benefited from customers returning to its restaurants in the United States, Canada and Europe following vaccinations, even as rising concerns over the Delta variant of the coronavirus kept consumers away from its chains in other markets.
Chipotle Mexican Grill (NYSE:CMG) and McDonald's (NYSE:MCD) have also delivered a strong beat in the third quarter, aided by product price hikes and the reopening of seating areas in their restaurants.
"We did see a return to dine-in, yet we saw digital sales go up ... that is still something that is going to continue to grow for us," Yum Brands Chief Executive Officer David Gibbs said on a call with analysts.
Taco Bell, which reintroduced its breakfast menu in the quarter, delivered an 8% jump in system sales - which excludes the impact of foreign currency translation - while KFC's sales were up 3% in the United States.
However, Yum Brands' Pizza Hut division saw its U.S. system sales drop 2% in the quarter, as pizza chains grapple with a slowdown in delivery demand following a surge during last year's lockdowns.
Shares of the company were down 1% at $124.81.
Earlier this month, rival Domino's Pizza (NYSE:DPZ) Inc posted its first drop in U.S. same-store sales in over a decade amid a tight labor market that created a shortage of drivers.
Yum Brands said it was well-positioned to tackle rising industry-wide inflation and growing labor shortages.
The company reported an adjusted profit of $1.22 per share on revenue of $1.61 billion, beating estimates of $1.08 per share on revenue of $1.59 billion.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.