Yum Brands reported its quarterly earnings recently, which showed a decline, thus missing analyst estimates. The drive behind this slump was the falling same-store sales of KFC and Pizza Hut, two of their significant revenue contributors.
Operating during the global pandemic, the company faced a major setback due to a decrease in footfall triggered by stay-at-home orders, geopolitical tensions, and changing consumer behaviour.
According to the report, both KFC and Pizza Hut recorded drops in their same-store sales. This essentially means that the sales at their existing stores, excluding any newly opened or closed during the period, were down.
Yum Brands, the parent company of these fast-food chains, has been under urgen observation for their ability to bounce back amid challenging times. The downturn in sales at KFC and Pizza Hut suggests it may take longer for recovery than initially anticipated.
The company now likely faces a crucial period of resurgence planning. However, it’s essential to note that these figures are a precise reflection of the conditions in the periods reported.
Furthermore, Yum Brands’ total quarterly revenues recorded a decrease as well. This largely reflected the declining sales in the same stores, implying fewer orders were placed in their existing stores during the period.
The report also highlighted sales downturn across many other chains under Yum Brands, suggesting a struggling portfolio triggered by the global negative economic consequences amidst the pandemic.
