Both KFC and Pizza Hut reported same-store sales declines of 4%.on Tuesday reported quarterly earnings and revenue that missed Wall Street's expectation as same-store sales at KFC and Pizza Hut slid more than expected.Revenue: $1.83 billion vs. $1.90 billion expectedYum reported third-quarter net income of $382 million, or $1.35 per share, down from $416 million, or $1.46 per share, a year earlier.
Yum's worldwide same-store sales fell 2% in the quarter, dragged down by weaker performances at KFC and Pizza Hut, which both reported same-store sales declines of 4%. The company's sales have been hurt by pressures related to"political conflicts and challenged consumer sentiment," CEO David Gibbs said in a statement. Conflict in the Middle East has weighed on Yum's results since the fourth quarter of last year.
KFC's U.S. same-store sales slid 5% this quarter. The market is KFC's second-largest, trailing only China, but the chain has ceded market share to Popeyes in recent years. Last year,Pizza Hut, on the other hand, saw a steeper decline in its international markets. The pizza chain saw its international same-store sales shrink 6%, while U.S. same-store sales fell just 1%.
Taco Bell, the gem of Yum's portfolio, reported same-store sales growth of 4%. Executives have previously said that the chain has a strong perception of value from consumers, helping its sales even during an industry-wide slowdown.