Aug 5 (Reuters) - Yum Brands ( YUM ) missed analysts'
estimates for second-quarter comparable sales and profit on
Tuesday, hit by higher ingredient costs and muted demand that
weighed on its businesses, including Taco Bell.
Concerns over the impact of steep tariffs and economic
growth have dented U.S. consumer spending on eating out,
prompting fast-food chains, including Yum Brands ( YUM ), McDonald's
and Burger King-owner Restaurant Brands, to
launch budget-friendly meal deals to boost foot traffic.
Taco Bell, which accounts for 38% of the company's total
revenue, rolled out meal boxes ranging from $5 to $9. Still, its
same-store sales growth in the U.S. - the biggest market -
slowed to 4% during the second quarter from 5% a year earlier.
Among other restaurant chains, Chipotle Mexican Grill ( CMG )
cut its annual sales growth forecast and missed
quarterly sales estimates on weak demand. Burger giant
McDonald's, which is set to report on Wednesday, warned of tough
conditions in May owing to tariff uncertainty.
The Trump administration's unpredictable trade policies have
also made it harder for businesses to plan operations, disrupted
supply chains and increased costs.
Yum's worldwide same-store sales rose 2% during the quarter
ended June 30, below analysts' average estimate of a 2.37%
increase, according to data compiled by LSEG.
Total costs and expenses for the quarter were up 13%.
Revenue was at $1.93 billion during the quarter, compared
with the estimate of $1.94 billion.
Excluding items, the company earned $1.44 per share, while
analysts estimated $1.46 per share.