May 1 (Reuters) - Yum Brands ( YUM ) reported a fall in
quarterly global same-store sales on Wednesday, hurt by choppy
demand for its KFC ( YUM ) and Pizza Hut brands from inflation-weary
consumers in the United States as well as in overseas markets.
Consumers in the United States are increasingly looking for
value-oriented meals in the face of sticky inflation, pushing
fast food chains to double down on promotions and offers and on
revamping their store and order experiences.
Yum Brands ( YUM ) joined coffee giant Starbucks ( SBUX ) in
recording its first drop in total same-store sales in about
three years.
"As expected, same-store sales were pressured this quarter,
but we are encouraged by strong two-year same-store sales growth
and positive momentum exiting the quarter," said CEO David
Gibbs.
Yum Brands' ( YUM ) total revenue fell nearly 3% to $1.60 billion in
the first-quarter ended March 31, missing analysts' estimates of
$1.71 billion, as per LSEG data.
The company's worldwide same-store sales fell 3% in the
first-quarter, while analysts were expecting a growth of 0.04%.
The launch of KFC's ( YUM ) first-ever loyalty program in the
reported quarter failed to drum up demand for the fast food
giant, as consumers continued to look for cheaper alternatives,
including meals at home.
This comes in contrast to results at pizza chain Domino's
, which reaped benefits from a revamped loyalty program
that has kept consumers hooked over the last two quarters.
Global same-store sales at its KFC ( YUM ) restaurants fell 2%,
while that of Pizza Hut dropped 7%.
Taco Bell posted an increase of 1%, compared with estimates
of 2.83%.