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Yum Beats Earnings, Cyclospora Outbreak Hits Taco Bell

Yum Brands posted quarterly earnings that surpassed Wall Street forecasts, with adjusted earnings per share at $1.56 versus the $1.49 expected by analysts. Revenue matched expectations at $2.05 billion, while net income jumped to $1.62 billion, up from $397 million a year earlier. The company’s same‑store sales were flat overall, but Taco Bell’s sales fell 4 % after a cyclospora outbreak linked to iceberg lettuce drew diners away. Yum said the chain has since rebounded, with U.S. Taco Bell outpacing industry growth since late September. During the quarter, Yum completed the sale of Pizza Hut, divesting its mainland China operations to Yum China and the rest to LongRange Capital. KFC’s U.S. sales shrank 6 % while international same‑store sales grew 5 %, and the chicken chain’s system sales in China and Europe helped lift its overall performance. The results highlight Yum’s resilience amid a food‑borne illness scare, but the company still faces pressure from a competitive U.S. quick‑service market.

· CNBC

The essential points

  1. 01Adjusted earnings per share hit $1.56, beating analysts’ $1.49 estimate.
  2. 02Taco Bell’s same‑store sales dipped 4 % after a cyclospora outbreak tied to iceberg lettuce.
  3. 03Yum completed the divestiture of Pizza Hut, selling mainland China assets to Yum China and the rest to LongRange Capital.
  4. 04KFC’s U.S. system sales fell 6 % while its international same‑store sales grew 5 %
The full brief

Yum Brands posted quarterly earnings that surpassed Wall Street forecasts, with adjusted earnings per share at $1. 56 versus the $1. 49 expected by analysts. Revenue matched expectations at $2. 05 billion, while net income jumped to $1. 62 billion, up from $397 million a year earlier.

The company’s same‑store sales were flat overall, but Taco Bell’s sales fell 4 % after a cyclospora outbreak linked to iceberg lettuce drew diners away. Yum said the chain has since rebounded, with U. S. Taco Bell outpacing industry growth since late September. During the quarter, Yum completed the sale of Pizza Hut, divesting its mainland China operations to Yum China and the rest to LongRange Capital. KFC’s U.

S. sales shrank 6 % while international same‑store sales grew 5 %, and the chicken chain’s system sales in China and Europe helped lift its overall performance. The results highlight Yum’s resilience amid a food‑borne illness scare, but the company still faces pressure from a competitive U. S. quick‑service market.