Yum Brands' second-quarter earnings showed a net income of $853 million, or $3.08 per share, significantly up from $374 million, or $1.33 per share, a year earlier. Adjusted earnings per share were $1.62, slightly above the expected $1.58, while revenue of $2.17 billion fell short of the $2.2 billion forecast.
The company reported a 3% increase in global same-store sales, with Taco Bell's same-store sales rising 7%. However, the ongoing cyclospora outbreak linked to Taco Bell's iceberg lettuce has led to a significant drop in daily customer traffic, raising concerns about the chain's performance and Yum's growth strategy.
Executives are expected to address these issues during the earnings call, especially since other chains like Chipotle have also reported sales declines due to consumer mistrust of fresh lettuce. Additionally, Yum's Pizza Hut, which is being sold for $2.7 billion, reported a 1% decline in same-store sales, further complicating the company's growth narrative