Taco Bell parent Yum Brands tops quarterly same-store sales estimates

A Taco Bell order and drinks sit inside the first digital-only U.S. location at Times Square in New York City, U.S., April 14, 2021. REUTERS/Shannon Stapleton/File Photoon Wednesday topped Wall Street estimates for quarterly sales as inflation continues to weigh on budgets, prompting more consumers to turn to Taco Bell and Pizza Hut for cheaper restaurant meals.

The company has banked on aggressive promotions and limited-time offers across its brands to attract customers. Yum Brands brought back the fan-favorite Volcano Menu at Taco Bell in the quarter, while KFC launched a $20 Fill Up Box deal offering a family meal including 12-piece nuggets, fries and biscuits.

Yum Brands’ strategy to lean on offers has helped its brands offset an industry-wide slowdown in traffic. Overall dining traffic fell throughout the quarter, but Taco Bell and Pizza Hut saw visits increase 3% and 6.4%, respectively, according to data from location analytics firm Placer.ai. headtopics.com

Global same-store sales at Taco Bell restaurants rose 8%, above estimates of an increase of 6.49%, while KFC posted an increase of 6%, compared with estimates of 5.39%, according to LSEG data. Total same-store sales at Yum Brands rose 6% in the third quarter, compared with analysts’ estimates of a 4.73% increase.Finland’s Neste said on Wednesday it plans to save 50 million euros ($53 million) annually through measures that include shedding 400 jobs globally to prepare for increasing competition in renewable fuels.

Inflation hasn’t taken a bite out of Pizza Hut and Taco Bell traffic: research“While consumers have been bitten by inflation, it’s clear there’s still an appetite for fast food,” says data analytics company Placer.ai Read more ⮕

How to claim a prize in Taco Bell’s 2023 ‘Steal a Base, Steal a Taco’ giveawayThis year’s prize is a free Nacho Cheese Doritos Locos Taco for members of the fast food giant’s loyalty program. Read more ⮕

Yum China stock drops 9% after KFC operator sees ‘softening’ demandClaudia Assis is a San Francisco-based reporter for MarketWatch. Follow her on Twitter ClaudiaAssisMW. Read more ⮕

Stocks making the biggest moves after hours: Paycom, AMD, Yum China and moreThese are the stocks posting the largest moves in extended trading. Read more ⮕

Yum China just gave investors a new reason to worry about the Chinese economyYum China stock drops 10%, fast-food operator sees ‘softening demand’ Read more ⮕

AMD, Paycom Software, First Solar, WeWork, Yum China, and More Stock Market MoversAdvanced Micro Devices issues a fourth-quarter revenue forecast shy of expectations, Paycom Software shares tumble on weak guidance, and First Solar raises… Read more ⮕