Yum! Brands, Inc. posted its second quarter earnings that fell short of analysts’ expectations.
The fast food company’s earnings excluding special items fell -9% from the year-ago quarter to $1.05 per share, compared to the $1.10 expected by analysts polled by Thomson Reuters.
GAAP earnings came in at $0.77, which is -40% lower year-over-year.
Revenues rose +2% year-over-year to $1.64 billion, in line with analysts’ estimate. Worldwide system sales excluding foreign currency translation climbed +3%. Global same-store sales growth came in at +1%; excluding China, it was +6%.
Yum indicated that consumers globally are becoming increasingly cautious, inducing the restaurant company to focus more on value offerings.
“If you look at the U.S., I think what’s happened over the last quarter is that the low-income consumer pulling back has become more pronounced,” Yum CEO David Gibbs said. However, he also added that it was “probably a bit of an oversimplification” to say that higher-income consumers are absorbing inflation better than those with lower incomes.