Yum Misses 1Q Profit Forecasts as Coronavirus Hits Results
April 29 2020 - 7:48AM
Dow Jones News
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 micah.maidenberg@wsj.com
(END) Dow Jones Newswires
April 29, 2020 07:33 ET (11:33 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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