10:37 AM EDT, 04/30/2025 (MT Newswires) -- Yum Brands' ( YUM ) first-quarter results rose year over year but sales fell short of market estimates, while the KFC ( YUM ) and Taco Bell parent expects tariffs to have an immaterial impact on its system-wide supply chain.

The company posted adjusted earnings of $1.30 a share for the March quarter, up from $1.15 the year before, above the FactSet-polled consensus of $1.29. Revenue climbed 12% year over year to $1.79 billion, but trailed the Street's view for $1.85 billion.

Worldwide same-store sales grew 3%, while five analysts polled by FactSet expected an increase of 3.2%. Same-store sales inclined 2% and 9% at KFC ( YUM ) and Taco Bell, respectively, while Pizza Hut moved down 2%.

During an earnings call with analysts, Chief Financial Officer Chris Turner said the company's business generally has "minimal supply chain-related tariff risk" as most markets source within their country, or from countries where there is no current risk of duties.

"As a result, we expect tariffs to have an immaterial impact on our system-wide supply chain," Turner said, according to a FactSet transcript. "Our global scale offers our system advantages to drive supply chain efficiencies, and our expert teams are partnering with suppliers and franchisees on the limited items where there is potential impact."

Earlier in April, US President Donald Trump announced sweeping new tariffs on imports from several nations, including China and Japan. Trump later declared a 90-day pause on duties for non-retaliating countries. However, the US and China have been in a deadlock, having raised tariffs on each other's goods multiple times.

Turner acknowledged that 2025 is becoming a "complex year to navigate" amid economic uncertainties and geopolitical challenges. Taco Bell, which represents about 80% of the group's profit in the US, is well-positioned to tackle the environment, according to Turner. KFC ( YUM ), which makes up 85% of the company's international profits, is "recovering from the Middle East conflict and gaining momentum around the world," the CFO added.

The company remains confident in its plan to generate core operating profit growth of 8% this year, Turner said on the call. The metric inclined 8% in the first quarter.

"As for the shape of the profit growth this year in (the second quarter), we expect to experience lower profit growth in part due to one-time expenses, such as our global franchise convention," Turner told analysts. "As a result, we expect second-half operating profit growth to be higher than the first half, landing us on algorithm for the full year."

Foreign exchange is set to be a tailwind of $10 million to operating profit for the remainder of the year, according to Turner.

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