Yum Brands revenue misses as Pizza Hut's same-store sales fall 2%

Core Insights - Yum Brands reported mixed quarterly results, with Pizza Hut's same-store sales declining more than expected, impacting overall performance [1][2] - The company’s net income for the first quarter was $253 million, down from $314 million a year earlier, translating to earnings of 90 cents per share [1] - Net sales increased by 12% to $1.79 billion, but fell short of the expected $1.85 billion [6] Financial Performance - Adjusted earnings per share were $1.30, slightly above the expected $1.29 [6] - Same-store sales across all brands rose by 3%, with Taco Bell leading with a 9% increase, surpassing estimates [2][3] - KFC's same-store sales grew by 2%, exceeding the 1.4% estimate, but its U.S. sales declined by 1% [3][4] Brand-Specific Performance - Pizza Hut's same-store sales fell by 2%, worse than the anticipated 0.1% decline, with U.S. sales down 5% and international sales flat [2] - KFC's performance in the U.S. is struggling, with competition from rivals like Wingstop and Raising Cane's [4] Digital Sales - Digital orders accounted for 55% of Yum's total sales this quarter, indicating a significant shift towards online and mobile ordering [4] Leadership Changes - CEO David Gibbs announced plans to retire in the first quarter of 2026, with the board currently searching for a successor [5]