Edmonton, Alberta, Canada – Yum Brands, the parent company of KFC, Taco Bell, and Pizza Hut, reported lower-than-expected sales for the last quarter of 2023. This news comes in the wake of disappointing revenue reports from other global restaurant giants such as Starbucks and McDonald’s, who also fell short of Wall Street’s expectations.
Yum Brands’ stock fell by more than 1% in premarket trading following the release of its quarterly earnings report. The company’s fourth-quarter net income increased to $463 million, or $1.62 per share, up from $371 million, or $1.29 per share, a year earlier. However, these figures still fell short of analysts’ expectations.
The company reported a 1% rise in net sales, totaling $2.04 billion for the quarter. Despite the increase in sales, Yum Brands’ global same-store sales also only saw a modest 1% increase for the quarter.
Pizza Hut, a subsidiary of Yum Brands, reported a decline in same-store sales of 2%, missing the expected 0.6% growth. Similarly, KFC’s same-store sales only rose by 2%, falling short of the expected 4.7% growth. Taco Bell, usually a standout performer for Yum Brands, also underperformed, reporting a same-store sales growth of 3%, missing the estimated 3.8%.
Looking ahead, Yum Brands has ambitious plans to expand its global footprint, with CEO David Gibbs stating that the company’s restaurant count is expected to surpass 60,000 locations. This expansion includes a KFC footprint of more than 30,000 restaurants and a Pizza Hut tally of beyond 20,000 worldwide.
The disappointing sales figures reported by Yum Brands and other major restaurant chains reflect the challenges facing the industry, and it remains to be seen how these companies will adapt to the evolving market landscape in the coming year.