(Corrects paragraph 2 to say KFC US same-store gross sales fell 5%, not 7%)
(Reuters) – Yum Manufacturers reported a shock fall in worldwide same-store gross sales on Tuesday as its KFC chain grapples with sluggish demand within the U.S., in addition to uneven worldwide gross sales.
KFC’s same-store gross sales within the U.S. tumbled 5%, marking their third straight quarter of declines this yr.
The drop got here at the same time as Yum in August launched $5 presents on two new objects below its “Style of KFC” worth menu, together with eight-piece hen nuggets pack in addition to a hen nugget meal bowl along with the two-piece drum and thigh meal.
The corporate was responding to the continued “worth wars” within the fast-food trade from friends equivalent to McDonald’s (NYSE:) and Burger King.
The chain, like lots of its friends, has additionally contended with diners searching for offers and reductions when consuming out to counter menu costs that stay excessive.
Yum’s Tex-Mex meals chain Taco Bell, in distinction, remained a vibrant spot. U.S. same-store gross sales rose 4%, the eleventh straight quarter of improve.
The corporate’s worldwide comparable gross sales fell 2%, in contrast with market expectations of a 0.23% rise, as per knowledge compiled by LSEG.
Yum’s shares had been down about 1% in premarket buying and selling. They’ve risen 1.6% thus far this yr.
In worldwide markets, the Pizza Hut guardian confronted the protracted impression from boycotts associated to Israel’s warfare in Gaza.
Gross sales impression from the battle had surfaced in a number of different markets past Malaysia, Indonesia and the Center East, executives had stated in August.
Burger King guardian Restaurant Manufacturers Worldwide (NYSE:) missed quarterly income expectations on Tuesday, whereas McDonald’s reported its greatest quarterly world gross sales drop in 4 years final week.
Excluding objects, Yum earned $1.37 per share within the third quarter ended Sept 30. Analysts on common had been anticipating a revenue of $1.41 per share.
(This story has been corrected to say KFC US same-store gross sales fell 5%, not 7%, in paragraph 2)
