Taco Bell parent Yum Brands global sales take a hit amid coronavirus

Yum Brands (YUM) beat on the top line but missed on bottom line expectation during its first quarter. Strength in same-store sales at Taco Bell was offset by weakness at Pizza Hut.

Here were the main numbers for Yum Brands first quarter, compared to Bloomberg estimates:

• Revenue: $1.26 billion vs. $1.20 billion expected, +0.7% YoY

• Adj. EPS: 64 cents vs. 66 cents per share expected

• Global same-store sales: -7% vs. -8.4% expected

“First-quarter results reflect two different realities. We began the year with momentum across many of our businesses, however as the quarter progressed we were heavily impacted by the unfortunate spread of COVID-19. Around the world, we took extraordinary measures to protect the health and safety of our employees, customers, franchisees and restaurant team members,” CEO David Gibbs said in a statement.

“I’m tremendously proud of all those executing across our company and franchise system and am encouraged by the second-quarter sales trends of many of our businesses in Asia and in the U.S.,” Gibbs added.

Much like the broader restaurant industry, Yum Brands shifted to takeout and delivery sales and shut down its dining rooms in the U.S. in mid-March amid the coronavirus pandemic.

The Louisville, Ky.-based company said in late March that the COVID-19 outbreak was having a severe impact on its operations globally. At the time of the update, approximately 7,000 stores around the world were closed. “We currently expect COVID-19 to impact our same-store sales for the quarter ended June 30, 2020 more significantly than it is impacting the current quarter due to the increasing number of markets currently impacted,” the company said in a filing.

CEO David Gibbs decided in late March that he would be forgoing his salary compensation for the rest of 2020, according to a SEC filing.

This post is developing. Please check back for updates.

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Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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