Yum! Brands Inc (NYSE:YUM) reported sales and profits below expectations for the second quarter as it saw declines in US same store sales at Pizza Hut and KFC, sending its shares lower on Tuesday.
For Q2, revenue was $1.93 billion, slightly below estimates of $1.94 billion.
Earnings per share of $1.44 missed estimates of $1.46.
KFC saw same-store sales growth of 2%, as strong international sales, notably in China, offset a 5% decline in US same-store sales.
Pizza Hut’s same-store sales fell 1%, also recording a 5% decline in US same-store sales.
A bright spot was Taco Bell, which saw its global same-store sales up 4%.
Yum! Brands opened 871 new restaurants globally during the quarter, raising its total unit count by 3% year-over-year.
The company also highlighted strong digital growth, with digital sales making up a record 57% of system sales, which exceeded $9 billion.
Further, Yum! Brands is preparing for a leadership change, with CFO Chris Turner set to become CEO starting October 1.
“As I reflect on my incredible 36-year journey with Yum!, it’s been a joy to bring our iconic brands to consumers around the world in collaboration with our world-class franchise partners and team members,” Yum! Brands CEO David Gibbs said in a statement.
“Yum! is in an enviable position with the very best talent and leaders in this industry at the helm of our global brands. I couldn’t be more confident passing the torch to Chris Turner, whose deep understanding of our business and bold vision will continue to propel Yum! forward."
Shares of Yum! Brands were down 3.4% at about $142 on Tuesday morning.