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November 1, 2023 :Yum Brands, the parent company of KFC, Pizza Hut, and Taco Bell, reported weaker-than-expected quarterly revenue on Wednesday due to slow sales at Pizza Hut in the United States.
The company’s revenue for the third quarter of 2023 came in at $1.71 billion, below analysts’ expectations of $1.77 billion. Same-store sales, a key performance metric for restaurant chains, increased by 6% for the quarter, but KFC and Taco Bell drove this. Pizza Hut’s same-store sales were flat in the U.S.
Yum Brands CEO David Gibbs blamed the slowdown at Pizza Hut on a number of factors, including rising inflation, supply chain disruptions, and increased competition from other pizza chains. He said that the company is working to improve the Pizza Hut brand and menu and to expand its delivery and digital capabilities.
The slow sales at Pizza Hut are a concern for Yum Brands. Pizza Hut is the company’s second-largest brand by revenue, and it has been struggling in recent years. The company has been trying to turn things around by revamping its menu and focusing on delivery and digital sales, but it has yet to see significant results.
The rising cost of food and labor is also putting pressure on Yum Brands’ margins. The company said its food and labor costs increased by 10% in the third quarter. This will likely continue to be a challenge for the company soon.
Despite the challenges, Yum Brands remains a well-positioned company. It has a strong portfolio of brands, and it is well-positioned to benefit from the growing demand for fast food and delivery.
Yum Brands reported weaker-than-expected quarterly revenue due to slow sales at Pizza Hut in the United States. The company is working to improve the Pizza Hut brand and menu and to expand its delivery and digital capabilities. However, it remains to be seen whether these efforts will be successful.
