Yum Brands revenue slumps as KFC, Pizza Hut struggle

Core Insights - Yum Brands reported disappointing revenue, with adjusted earnings per share of $1.44, missing Wall Street estimates of $1.46, and revenue of $1.93 billion, below projections of $1.94 billion [1] - The company faced challenges in the US market, particularly with KFC and Pizza Hut, which saw significant sales declines [1][7] Financial Performance - Net income for Yum Brands was $374 million, or $1.33 per share, in the second quarter, up from $367 million the previous year [2] - Overall same-store sales increased by 2% during the quarter [2] Segment Performance - KFC's global same-store sales rose by 2%, but US same-store sales fell by 5% [5][6] - Pizza Hut's global same-store sales decreased by 1%, with US same-store sales plunging by 5% [7][8] - Taco Bell reported a 4% growth in same-store sales in the US and internationally, benefiting from the successful re-launch of Crispy Chicken Nuggets [9][11] Strategic Initiatives - The company is attempting to boost sales through value options and new menu items, although these efforts have not resonated well with customers [5][7] - Yum Brands is rushing to implement new promotions to address the insufficient value message perceived by American customers [7] Operational Growth - Yum Brands increased its restaurant count by 3%, adding 871 new locations, primarily international KFC restaurants [10]