Yum Brands reported fourth quarter earnings and revenue that exceeded analysts’ expectations, driven by accelerated same-store sales growth at Taco Bell, according to a recent CNBC report.
“We’re connecting and we’re winning because of value,” Yum CEO David Gibbs stated during a conference call.
The fast-food chain attracted customers with a combination of a spike in price for menu items and value offerings, resulting in 11% same-store sales growth and a 6.7% difference from StreetAccounts' estimates.
The strong performance in the U.S. was due to high-income consumers opting for fast food and low-income diners choosing value meals.
The chain's global footprint exceeded 1,000 locations during the quarter, but sales in China later declined, impacting KFC and Pizza Hut, as COVID-19-related shutdowns impacted Yum and other restaurant companies, such as Starbucks.
KFC reported a same-store sales growth of 5%, reflecting sums 5.4% lower than expected, while Pizza Hut's overall same-store sales increased by 1%. The Habit Burger Grill, Yum's latest acquisition, reported a 1% decrease in same-store sales, but its system sales soared 12% as a result of the brand's rapid expansion.
Despite the financial challenges in China, Yum Brands remains positive about its future growth and is committed to expanding its international footprint. Known as its strongest performer, Taco Bell is well-positioned to continue attracting customers with its unique menu offerings and strong value proposition.
The global food brand is also prioritizing the success of its other brands and continuing to develop innovative tactics to meet the changing needs and preferences of its clients.