Yum Brands on Tuesday reported earnings that beat expectations, but a cyclospora outbreak linked to iceberg lettuce at Taco Bell hurt the company’s same-store sales growth. However, Yum said Taco Bell, which the company considers a “growth engine” for its business, has since recovered. “Since late September, Taco Bell US has been outperforming the [quick-service restaurant] industry in same-store sales growth,” Yum CEO Chris Turner said in a statement. Here’s what the company reported compared to what Wall Street expected, according to a survey of analysts by LSEG: Earnings per share: Adjusted $1.56 vs. $1.49 expected Revenue: $2.05 billion vs. $2.05 billion expectedYum reported fiscal third-quarter net income of $1.62 billion million, or $5.92 per share, up from $397 million, or $1.41 per share, a year earlier. Excluding gains from its sale of Pizza Hut and other items, the restaurant company earned $1.56 per share. Net sales rose 4% to $2.05 billion. During the quarter, Yum completed its sale of Pizza Hut. on Aug. 7 and sold the rest of Pizza Hut to LongRange Capital. Sept. 1. The company’s third-quarter results include Pizza Hut. Yum’s previously said the July 18 weekend saw the most severe hit to sales, but sales trends have improved since then. In the U.S., Taco Bell’s much smaller international business posted same-store sales growth of 5%. KFC’s same-store sales rose 1%, helped by system sales growth in China, and Europe, now the chicken chain’s third-largest market, saw system sales decline by 1%. 6% for the quarter. Like Restaurant Brands International’s Popeyes, KFC has struggled in the U.S. amid a wave of new competitors and more budget-conscious consumers.
