Taco Bell, KFC Power Yum Brands Quarterly Profit, Revenue Beat

By Reuters
Reuters
Reuters
October 28, 2021 Updated: October 28, 2021

KFC owner Yum Brands Inc. beat Wall Street estimates for quarterly revenue and profit on Thursday, as steady demand for its fried chicken and tacos cushioned the blow from a slowdown in sales in its Pizza Hut chain.

Rival fast-food chains Chipotle Mexican Grill and McDonald’s have also delivered a strong beat in the quarter, aided by the reopening of seating areas in their restaurants and product price hikes.

However, Yum Brands’ Pizza Hut division saw its U.S. system-wide sales drop 2 percent in the quarter, as pizza chains grapple with a slowdown in delivery demand following a surge during last year’s lockdowns.

Earlier this month, rival Domino’s Pizza Inc. posted its first drop in U.S. same-store sales in over a decade as it also faced a tight labor market that created a shortage of drivers.

Comparable sales for Yum Brands jumped 5 percent in the third quarter ended Sept. 30, missing the average estimate of a 6.5 percent increase, according to Refinitiv IBES.

The Taco Bell owner still reported an adjusted profit of $1.22 per share on revenue of $1.61 billion, beating estimates of earnings of $1.08 per share on revenue of $1.59 billion.

Reuters