Yum! Brands Stock Rises as Value-Focused Consumers Lift Taco Bell Sales

Yum! Brands (YUM) shares roseate successful intraday trading Tuesday contempt second-quarter income and nett income falling somewhat short of estimates, arsenic executives said nan institution is encouraged by nan capacity of Taco Bell arsenic consumers look to get worth for their money.

The genitor institution of Taco Bell, Pizza Hut, and KFC reported higher revenue than nan 2nd 4th of 2023 astatine $1.76 billion, narrowly missing analysts' estimates compiled by Visible Alpha. Net income besides missed estimates astatine $367 million, but adjusted nett income of $386 cardinal came successful supra estimates aft accounting for definite one-time costs.

Taco Bell Drives Sales Growth Amid Fast-Food Value Push

Same-store sales roseate 5% year-over-year astatine Taco Bell. However, little income astatine KFC and Pizza Hut dragged same-store income down 1% for nan wide company, akin to its first-quarter performance.

Chief Executive Officer (CEO) David Gibbs said successful Tuesday's net telephone that nan institution feels bully astir Taco Bell's capacity because of nan chain's expertise to beryllium nan "always-on-value brand" successful a user situation "where nan user is astir apt pulling backmost a small bit."

Value has been a cardinal focus among different fast-food heavyweights for illustration McDonald's (MCD) and Wendy's (WEN) successful caller months, arsenic nan companies person said galore consumers, particularly successful little income brackets, person trim their discretionary spending complete nan past year. Gibbs said nan institution is "well-positioned to navigate these user headwinds" arsenic brands for illustration Taco Bell and KFC person "reputations for worth nary matter nan environment."

Shares of Yum! Brands roseate 3.6% to $138.05 arsenic of 2:10 p.m. ET Tuesday, adding to a winning agelong that has seen nan banal emergence 10% complete nan past 2 weeks.