KFC and Pizza Hut same-store sales decline, contributing to Yum Brands' earnings miss estimates.

• Yum Brands missed Wall Street's expectations for its quarterly earnings and revenue.
• Both KFC and Pizza Hut reported same-store sales declines of 4%.
• The company's results were negatively impacted by weak consumer sentiment and political conflicts, as stated by Yum CEO David Gibbs.

Wall Street's expectations for quarterly earnings and revenue were not met on Tuesday, as same-store sales at KFC and Pizza Hut declined more than anticipated.

Based on a survey of analysts by LSEG, the company's reported results differed from Wall Street's expectations.

• Earnings per share: $1.37 adjusted vs. $1.41 expected
• Revenue: $1.83 billion vs. $1.90 billion expected

Yum's third-quarter net income decreased to $382 million, or $1.35 per share, from $416 million, or $1.46 per share, in the previous year.

Excluding items, the company earned $1.37 per share.

Net sales rose 7% to $1.83 billion.

KFC and Pizza Hut's weak sales performance led to a 2% decline in Yum's worldwide same-store sales in the quarter.

Yum's sales have been negatively impacted by political conflicts and consumer sentiment challenges, as stated by CEO David Gibbs.

KFC's sales in the US decreased by 5% in the latest quarter. Despite being the second-largest market for the chain, following only China, KFC has lost market share to Popeyes in recent years. In 2020, Popeyes surpassed KFC as the number two chicken chain in the US.

While U.S. same-store sales for Pizza Hut fell only 1%, its international markets experienced a steeper decline of 6% in same-store sales.

Yum's Taco Bell reported a 4% increase in same-store sales, despite an industry-wide slowdown. The chain's strong perception of value from consumers has helped it maintain sales.

This story is developing. Please check back for updates.