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28m ago

Yum Brands Launches Strategic Review of Pizza Hut as Taco Bell and KFC Power Results

Investors were told the process has no timetable or assurance of a transaction.

FILE - Pizza Hut is seen in in Taunton, Mass., on July 9, 2015. (AP Photo/Stephan Savoia, File)
A view of a Pizza Hut store, in London, Britain, December 30, 2024. REUTERS/Mina Kim/File Photo
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Overview

  • Yum reported third-quarter revenue up 8% to $1.98 billion and adjusted earnings of $1.58 per share, with company same-store sales rising 3%.
  • Taco Bell posted 7% same-store sales growth and KFC rose 3%, while Pizza Hut declined 1% globally, including a 7% drop at U.S. locations open at least a year.
  • The company said it is evaluating alternatives for Pizza Hut that could include a sale, a joint venture, or selling a stake.
  • CEO Chris Turner said Pizza Hut may realize more value outside the company after multiple quarters of underperformance.
  • Yum also said it is acquiring 128 Taco Bell restaurants in the U.S. Southeast, noting its system is about 98% franchised and that digital orders account for roughly 60% of sales.