Yum Brands (YUM.N) on Wednesday topped Wall Street estimates for quarterly sales as inflation continues to weigh on budgets, prompting more consumers to turn to Taco Bell and Pizza Hut for cheaper restaurant meals.
A Taco Bell order and drinks sit inside the first digital-only U.S. location at Times Square in New York City, U.S., April 14, 2021. REUTERS/Shannon Stapleton/File Photoon Wednesday topped Wall Street estimates for quarterly sales as inflation continues to weigh on budgets, prompting more consumers to turn to Taco Bell and Pizza Hut for cheaper restaurant meals.
The company has banked on aggressive promotions and limited-time offers across its brands to attract customers. Yum Brands brought back the fan-favorite Volcano Menu at Taco Bell in the quarter, while KFC launched a $20 Fill Up Box deal offering a family meal including 12-piece nuggets, fries and biscuits.
Yum Brands' strategy to lean on offers has helped its brands offset an industry-wide slowdown in traffic. Overall dining traffic fell throughout the quarter, but Taco Bell and Pizza Hut saw visits increase 3% and 6.4%, respectively, according to data from location analytics firm Placer.ai. Global same-store sales at Taco Bell restaurants rose 8%, above estimates of an increase of 6.49%, while KFC posted an increase of 6%, compared with estimates of 5.39%, according to LSEG data.
Total same-store sales at Yum Brands rose 6% in the third quarter, compared with analysts' estimates of a 4.73% increase.Finland's Neste said on Wednesday it plans to save 50 million euros annually through measures that include shedding 400 jobs globally to prepare for increasing competition in renewable fuels.
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