On Wednesday, Yum Brands posted quarterly earnings that missed analysts’ expectations.
The company, which owns several restaurant-chains such as Taco Bell, KFC and Pizza Hut, reported third quarter adjusted earnings of 80 cents a share, compared to analysts’ estimate of 94 cents.
Net revenue of $1.34 billion in the quarter was almost in line with the $1.344 billion expected by analysts. But the figure was -4% lower from the year-ago quarter.
According to Yum, changing the fair value of its GrubHub investment pulled down earnings by 15 cents per share. Last year, Yum bought a 3% stake in the third-party delivery app.
Yum’s Pizza Hut reported flat same-store sales growth, falling short of Wall Street’s estimates of +1.5%. Last quarter, executives said that Pizza Hut could shut down more than 400 stores to restructure franchisees’ businesses.
KFC narrowly missed same-store sales expectations. In the U.S., same-store sales declined by -1%.
However, Yum’s Taco Bell chain experienced same-store sales growth of +4%, which is higher than expectations of +3.5%. Executives said the chain had its fastest third quarter in five years with respect to service times.
During the quarter, Yum opened 389 net new restaurants across all three chains.