12:34 PM EDT, 08/06/2024 (MT Newswires) -- Yum Brands ( YUM ) reported below-forecast second-quarter sales on Tuesday amid a more cost-conscious consumer, while the KFC ( YUM ) and Taco Bell parent's earnings didn't fall as much as feared.

Revenue advanced to $1.76 billion for the three months ended June 30 from $1.69 billion a year ago but missed the $1.8 billion average analyst estimate on Capital IQ. Same store sales dipped 1%, versus the consensus for them to be flat.

Adjusted earnings per share dipped to $1.35 from $1.41 year over year but beat the market view for $1.33. Shares of Yum Brands ( YUM ) were up 4.1% in midday trade.

"I'm incredibly pleased with how well our teams have managed through a challenging operating environment to deliver a 10% increase in core operating profit," Chief Executive David Gibbs said in a statement. "Our twin growth engines of Taco Bell US and KFC International combined delivered 5% system sales growth led by 8% unit growth."

Significant volatility remains, however, and sales in some markets "are not where we want them to be," Gibbs told analysts on a conference call, according to a Capital IQ transcript.

By brand, KFC ( YUM ) and Pizza Hut same store sales each fell by 3% while Taco Bell's rose 5%. Company sales were up 12% to $572 million while franchise and property revenue moved to $789 million from $785 million

"The impacts from the Middle East conflict, in addition to a more cost-conscious consumer, have presented headwinds to same-store sales," Gibbs said on the call. "Despite these tougher waters, we are confident we will deliver on profit growth in line with our long-term algorithm for 2024 and are set up for continued strong growth in 2025."

The quick service restaurant operator continues to expect at least 8% core operating profit growth in 2024, according to Gibbs.

Price: 138.91, Change: +5.59, Percent Change: +4.19