Yum Brands (NYSE:YUM) on Wednesday reported first-quarter same-store sales down 7% as the coronavirus pandemic weighed on Pizza Hut and KFC’s sales.
Yum reported fiscal first-quarter net income of $83 million, or 27 cents per share, down from $262 million, or 83 cents per share, a year earlier.
The company’s minority stake in Grubhub trimmed earnings per share by six cents.
Excluding re-franchising gains, costs of acquiring Habit Burger Grill and other items, Yum earned 64 cents per share.
Net sales rose 1% to $1.26 billion.
Wall Street anticipated earnings per share of 65 cents on revenue of $1.20 billion.
KFC’s same-store sales shrank 8% in the quarter. More than a quarter of the fried chicken chain’s systemwide sales come from China, where it was forced to close many locations temporarily to slow the spread of the coronavirus.
Pizza Hut, the laggard of Yum’s portfolio, reported even steeper same-store sales declines of 11% as sales in the U.S. and China fell.
Taco Bell was the only brand to report positive same-store sales growth during the quarter. In mid-March, the chain began offering only drive-thru service, with takeout allowed if the location did not have a drive-thru lane. Some restaurants began opening later, effectively removing breakfast from the menu.
Shares in YUM! acquired $1.15, or 1.3%, early Wednesday to $89.42.
