Chicken shortage at KFC UK dragged down same-store sales growth
Yum Brands posts weaker-than-expected same-store sales growth in the first quarter despite beating estimates for revenue and profit.
A chicken shortage in the U.K. in February weighed heavily on KFC during the first quarter, dragging down same-store sales growth at its parent company, Yum Brands.
Whilst Yum outpaced analyst estimates on revenue and profit, sales at Pizza Hut and Taco Bell were not enough to buoy its same-store sales growth.
The company's revenue fell 3 percent to $1.37 billion, compared with $1.42 billion last year. Wall Street had expected revenue to be $1.09 billion, according to Thomson Reuters estimates.
"As we begin the second full year of our transformation journey, I'm pleased with our progress towards becoming a more focused, more franchised and more efficient company," CEO Greg Creed said. "We're maintaining all aspects of our full-year 2018 guidance and remain confident that this transformation is building a strong foundation for long-term growth and will deliver increased returns for our stakeholders."
The company reiterated its forecast that same-store sales will grow 2 to 3% this year and that net new unit growth will be 3 to 4%.
