April 29 (Reuters) - Yum Brands (YUM) beat Wall Street
estimates for first-quarter same-store sales growth and profit
on Wednesday, as affordable meal offers drove demand at Taco
Bell and KFC (YUM) chains amid economic uncertainty.
U.S. fast-food chains have stepped up promotions and offers
across their portfolio over the past few quarters to bring back
consumers who have avoided dining out due to budget constraints.
Like rivals McDonald's and Burger King, Yum
Brands (YUM) has rolled out deals such as Luxe value menu starting at
$3 at its Taco Bell divisions, which has helped boost sales and
gain market share in key regions such as the U.S.
At KFC (YUM), the company has expanded and upgraded its beverage
offerings, such as KWENCH range, to resonate with younger
consumers.
Quarterly same-store sales at Taco Bell, which accounted for 38%
of total revenue in 2025, were up 8%, while that at KFC (YUM) were up
2%.
Yum Brands' (YUM) worldwide same-store sales were up 3%, compared with
analysts' estimates of 2.51% rise, according to data compiled by
LSEG.
Yum's investments in back-end technology, such as the AI-backed
"Byte by Yum" platform, have helped cut restaurant wait times
and speed up deliveries.
On an adjusted basis, the company posted a profit of $1.50 per
share in the quarter ended March 31, beating estimates of $1.38
per share.
However, Pizza Hut remained under pressure, recording a 4% fall
in comparable sales in the U.S., extending its decline to 10
consecutive quarters. Yum had said last year it was exploring
strategic options for Pizza Hut.
Rival Domino's Pizza earlier this week also posted weak
quarterly sales and forecast soft fiscal 2026 growth amid
challenges from stiff competition and strained consumer
sentiment.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by
Leroy Leo)
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