Yum Brands Beats Q3 Earnings Despite Taco Bell Outbreak
Yum Brands exceeded third-quarter earnings expectations while completing the divestiture of Pizza Hut and managing a sales dip at Taco Bell following a foodborne illness outbreak.
Yum Brands reported third-quarter adjusted earnings per share of $1.56 and revenue of $2.05 billion, surpassing Wall Street expectations of $1.49 per share. The results followed the complete divestiture of Pizza Hut, with the company selling its mainland China business to Yum China on August 7 and remaining operations to LongRange Capital on September 1.
Financial performance was mixed across its remaining brands. KFC saw a 1% increase in global same-store sales, although its U.S. system sales declined by 6%. Taco Bell experienced a 4% drop in same-store sales linked to a cyclospora outbreak involving iceberg lettuce, with the most significant impact occurring during the weekend of July 18.
CEO Chris Turner stated that Taco Bell U.S. has since rebounded and is now outpacing the quick-service restaurant industry on same-store sales growth.
