# Yum beats sales estimates as customers flock to KFC, Taco Bell deals
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-02
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Yum Brands Inc Beats Wall Street Estimates with KFC and
Meta Description: Discover how Yum Brands Inc surpassed expectations with affordable menu options and promotions at KFC and Taco Bell, attracting inflation-weary consumers.
URL: https://financedigest.com/yum-beats-sales-estimates-as-customers-flock-to-kfc-taco-bell-dealshtml

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By Uday Sampath Kumar

(Reuters) -Yum Brands Inc beat Wall Street estimates for quarterly comparable sales on Wednesday, as the company’s KFC value deals and $2 Taco Bell burritos pulled in more inflation-weary consumers to its restaurants.

Yum’s shares rose 1.6% in morning trading.

Menu [price hikes at dine-in restaurants to keep up with surging costs have pushed consumers](https://www.financedigest.com/investors-warn-big-consumer-firms-over-price-hikes-as-competitors-gain.html "Investors warn big consumer firms over price hikes as competitors gain") who want to eat out, but not exhaust their wallets, to fast food chains like KFC and Taco Bell where meals are more affordable and promotions more frequent.

Yum said new value-deals at KFC, such as the reboot of its $5 Mac & Cheese bowls and a $6 2-piece drum and thigh combo, helped push global same-store [sales at the restaurant chain up 7% in the third quarter](https://www.financedigest.com/food-group-danone-raises-2022-outlook-as-third-quarter-sales-beat-expectations.html "Food group Danone raises 2022 outlook as third-quarter sales beat expectations").

Last week, McDonald’s Corp also beat quarterly comparable sales and [profit estimates helped by an increase](https://www.financedigest.com/4-tips-for-landlords-to-increase-rental-property-profits.html "4 Tips for Landlords to Increase Rental Property Profits") in restaurant traffic owing to cheaper-priced menu offerings.

Value does seem to be more of a factor today than it might have been six or nine months ago,” Yum [Chief Executive Officer](https://www.financedigest.com/host-analytics-appoints-chris-labruna-as-chief-revenue-officer.html "Host Analytics Appoints Chris LaBruna as Chief Revenue Officer") David Gibbs said on an analyst call.

Yum, which also owns the Pizza Hut chain, said global comparable [sales rose 5% in the reported](https://www.financedigest.com/manchester-united-tanks-on-report-glazers-may-avoid-sale-with-new-investment.html "Manchester United tanks on report Glazers may avoid sale with new investment") quarter, compared to analysts’ average estimate of a 3.2% increase, according to Refinitiv IBES data.

Same-store [sales rose 6% at Taco Bell in the quarter](https://www.financedigest.com/uk-new-car-sales-up-by-nearly-a-quarter-in-october-smmt.html "UK new car sales up by nearly a quarter in October – SMMT"), helped by new burrito additions to its $2 menu.

Analysts at Cowen & Co said the [return of Taco Bell’s popular “Mexican Pizza” in September](https://www.financedigest.com/britains-metro-bank-returned-to-profit-in-september-sees-no-customer-stress.html "Britain’s Metro Bank returned to profit in September, sees no customer stress") will likely boost U.S. [sales even more in the current quarter](https://www.financedigest.com/snam-confirms-guidance-after-rise-in-first-quarter-sales.html "Snam confirms guidance after rise in first quarter sales").

Excluding one-time items, Yum Brands earned $1.09 per share, missing estimates of $1.14 per share, with the company blaming the [hit from a stronger dollar and a loss in profits](https://www.financedigest.com/uks-dominos-expects-tech-investments-to-hit-2023-profit.html "UK’s Domino’s expects tech investments to hit 2023 profit") from the exit of its KFC business in Russia.

(Reporting by Mehr Bedi and Uday Sampath in Bengaluru; Editing by Shailesh Kuber)


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