KFC, Taco Bell Drive Yum! Brands Q3 Sales Growth; Pizza Hut Lags Behind

KFC and Taco Bell were revealed to have driven sales growth for their parent company, Yum! Brands, and this was reflected in the third quarter earnings results of the American restaurant company. However, despite the fast-food chains' good performances in the industry, Yum! Brands still missed on revenue.

For this result, it was reported that Pizza Hut's sales have slowed down, and this weighed on the company's earnings. According to Yahoo Finance, the pizza chain's dull sales brought down the numbers while Taco Bell and KFC continue to rake in sales for their parent firm.

Revenue Expectation in the Q3

Based on the reports, Yum! Brands earnings came up at $1.71 billion, which was lower than the expected number. The estimate was $1.77 billion, so the company missed revenue while adjusted earnings per share was $1.44, which is higher than the $1.27 expectation from Wall Street.

Moreover, in the third quarter earnings report, the firm's same-store sales went up 6%, and this was said to have been boosted by KFC, which showed an increase of six percent and Taco Bell, with an eight percent sales increase. Both fast-food chains also beat their respective estimates. Due to excellent performances, Yum! Brands' chief executive officer, David Gibbs, reportedly labeled both KFC and Taco Bell as their "twin growth engines."

Pizza Hut Struggling to Raise Its Sales

While Taco Bell and KFC continue to show strong sales in the United States, it is a different scenario from Pizza Hut. This is because it has yet to pick up its earnings.

Finally, as per CNBC, Pizza Hut is not the only pizza restaurant in the U.S. that is currently struggling to attract customers. Lately, Domino's Pizza is not doing well in the market, and in fact, its same-store sales plunged by 0.6% in the third quarter as well.

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