Yum! Brands Reports Decline in Q1 Earnings as Pizza Hut and KFC Struggle

Shares of Yum! Brands fell following a disappointing first quarter, with significant sales drops at key franchises and a missed earnings estimate.

Yum! Brands' first quarter earnings per share of $1.15 and revenue of $1.6 billion both fell short of analysts' expectations.
Sales at KFC and Pizza Hut in the U.S. decreased by 8% and 6% respectively, contributing to a global same-store sales decline of 3%.
Despite the downturn, digital sales for Yum! Brands surpassed 50% of total sales for the first time, indicating a shift towards online transactions.
Taco Bell, another Yum! Brands franchise, showed a slight increase in same-store sales, contrasting with the declines seen at Pizza Hut and KFC.
The company opened 808 new restaurants globally, expanding its total footprint by 6% during the quarter.