Yum Brands Inc reported quarterly same-store sales and profit that missed market expectations on Thursday, as sales at its Pizza Hut chain in the United States were hurt by stiff competition.
Pizza Hut is struggling to keep its market share in a crowded dining market, amid rivalry from Domino's Pizza , local eateries as well as food-delivery apps that offer a wide selection of restaurants to choose from.The pizza chain, which has missed Wall Street expectations for sales growth in six out of the past eight quarters, has been a weak spot for Yum, even as its other chains, KFC and Taco Bell, continue to perform well.
"It used to be family on a Friday night, watching a movie and ordering pizza...now they stream a video and can order from a online menu," he said. The firm holds Yum shares.To fight competition, Pizza Hut has introduced new concepts such as heated lockers that allow diners to pick up online orders from restaurants and is testing plant-based meat toppings.
Overall, sales at Yum's restaurants open at least a year climbed 2per cent, below the Wall Street estimate of 2.26per cent.