KFC-parent Yum Brands tops same-store sales estimates as diners seek value meals
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Yum Brands said it would complete its strategic review of the Pizza Hut brand in 2026.
PHOTO: UNSPLASH
Yum Brands topped quarterly sales estimates on Feb 4 on the back of steady demand at Taco Bell in the US and KFC in international markets as diners sought cheaper meals.
Fast-food chains are leaning on value meals to attract budget-conscious consumers who are wary of dining out after several quarters of price hikes. Restaurants are also adjusting menus to add more protein and provide smaller portions, as the use of appetite-suppressing weight-loss drugs has increased in the US.
Data from Consumer Edge showed that value offerings from Taco Bell were resonating not just with solo diners, but also with group and bulk orders, said Mr Michael Gunther, vice-president of research and market intelligence at the data firm.
Yum Brands plans to adjust portion sizes and add more lower-priced items and value deals at KFC to drive traffic, chief executive Chris Turner said on a post-earnings call.
But the company missed fourth-quarter profit expectations, and operating margins at Taco Bell declined 0.5 percentage points, hurt by higher costs of commodities, including beef.
Taco Bell US same-store sales rose 7 per cent in the quarter, helped by demand for its Tex-Mex cuisine and combo meals priced between US$5 (S$6.40) and US$11.99.
KFC’s worldwide same-store sales rose 3 per cent in the quarter, helped by new store openings.
Yum Brands said it would complete its strategic review of the Pizza Hut brand in 2026 and close about 250 underperforming stores in the US in the first half of the year.
The company began exploring strategic options for Pizza Hut in November, and the chain reported its ninth straight quarter of fall in same-store sales.
Yum Brands’ worldwide same-store sales rose 3 per cent for the quarter ended Dec 31 and beat estimates of 2.74 per cent, according to data compiled by LSEG.
Adjusted profit for the quarter was US$1.73 per share, missing estimates of US$1.77. The company’s shares were down nearly 1 per cent in choppy early trading. REUTERS
