Yum Brands Beats Quarterly Earnings Estimates Despite Taco Bell Sales Decline
Yum Brands reported third-quarter adjusted earnings of $1.56 per share, surpassing Wall Street expectations of $1.49. While total revenue met projections at $2.05 billion, the company's performance was complicated by a cyclospora outbreak linked to lettuce at Taco Bell locations, which caused a 4% decline in the brand's same-store sales. Despite the temporary setback for its primary growth engine, CEO Chris Turner noted that Taco Bell U.S. has since rebounded and is currently outpacing the quick-service restaurant industry in sales growth. The quarter also marked the completion of Yum's divestiture of Pizza Hut, including the sale of its mainland China business to Yum China and the remaining assets to LongRange Capital.
Topics: divestiture earnings beat food safety outbreak same-store sales