Yum Brands rises after quarterly profit beat
YUM•Yum Brands reported third-quarter adjusted earnings of $1.56 per share, above estimates of $1.49, while same-store sales were flat year over year. Taco Bell same-store sales fell 4%, more than analysts expected, after a cyclosporiasis outbreak made customers wary of dining out.
1. Profit beats estimates
Yum Brands reported third-quarter adjusted profit of $1.56 per share, compared with estimates of $1.49. Overall same-store sales were flat year over year, missing expectations for a 0.9% increase.
2. Taco Bell sales fall
Taco Bell same-store sales declined 4%, versus analysts’ expectations for a 0.9% drop. The article linked customer wariness about dining out at the chain to a U.S. cyclosporiasis outbreak. CEO Chris Turner said Taco Bell U.S. had outpaced the quick-service restaurant industry in same-store sales growth since the end of September; RBC analyst Logan Reich said the outbreak-related headwind would prove temporary.
