Yum Misses 1Q Profit Forecasts as Coronavirus Hits Results

By Micah Maidenberg

Yum Brands Inc. reported lower sales from its existing base of stores and a weaker first-quarter profit as governments around the world closed dining rooms in an effort to contain the new coronavirus.

The fast-food company that owns Taco Bell, Pizza Hut, KFC and Habit Burger Grill said Wednesday that same-store sales dropped 7% globally in the quarter. Pizza Hut's same-store sales declined 11%, KFC's were down 8% but Taco Bell's rose 1%, according to Yum.

The company reported revenue of $1.26 billion for the quarter compared with $1.25 billion a year earlier. Analysts polled by FactSet predicted $1.22 billion in revenue.

Yum said it made a profit of $83 million, or 27 cents a share, down from $262 million, or 83 cents a share, in the first quarter last year. Excluding certain items, Yum said it generated a profit of 64 cents a share, 3 cents short of forecasts from analysts polled by FactSet.

"We began the year with momentum across many of our businesses, however as the quarter progressed we were heavily impacted by the unfortunate spread of Covid-19," Chief Executive David Gibbs said.

Write to Micah Maidenberg at [e-mail]

(END) Dow Jones Newswires

April 29, 2020 07:33 ET (11:33 GMT)

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