Burger King, KFC owners miss results estimates as fast-food spending wanes
Sluggish fast-food spending prompted by eat-at-home trend
Burger King, KFC, Pizza Hut sales weaken in US
International markets of China, Middle East struggle
Adds analyst comment in paragraph 4, international segment numbers in paragraph 10 - 12
By Juveria Tabassum and Savyata Mishra
Nov 5 (Reuters) -Burger King parent Restaurant Brands QSR.N QSR.TO and KFC owner Yum Brands YUM.N missed market estimates for quarterly results on Tuesday, hit by choppy demand in the United States and abroad from budget-stretched customers.
Rising fast-food prices over the past year have prompted consumers to cook cheaper meals at home and avoid eating out,hurting traffic across the industry.
As a result, quick-service restaurant (QSR) chainshave turned to aggressive promotions in an attempt to attract value-seeking customers. Burger King, McDonald's, KFC and Wendy's WEN.O have all launched $5 value meals since June this year to get lower-income customers back into their outlets.
"This is a challenging situation for the QSR market. I don't think anybody's going to be out of trouble anytime soon, but they're doing something that seems to be working to at least stop the deceleration in traffic," said Danilo Gargiulo, senior analyst at Bernstein.
Burger King U.S. salesdeclined 0.4%in the quarter ended Sept. 30, compared with a 6.6% rise last year. KFC's same-store sales in the U.S. tumbled 5% in the same period, marking the third straight quarter of declines this year.
McDonald's last week reported a bigger-than-expected drop in global comparable sales and flagged weakness in international markets such as France, Britain and the Middle East.
INTERNATIONAL WEAKNESS
Achallenging economic recovery in China and weak demand inthe Middle East from boycott campaigns related to the Israel-Hamas conflict have worsened the sales hit to restaurant operators.
Yum Brands, which also owns Pizza Hut and Taco Bell, saw worldwide same-store sales decline 2%, while Popeyes parent Restaurant Brands reported a comparable sales rise of only 1.8% for its international segment, compared with 7.7% last year.
Yum executives said on a post-earnings call that several international markets, including China and India, became "more intentional in offering value", causing the company to shift to lower price points.
"Our sales didn't meet expectations in a few key markets, including China and the Middle East, where we have outsized exposure, and as a result, we tempered our expectations in the fourth quarter," they said.
Last week, McDonald's executives said they expect the Middle East conflict to keep hurting theirbusiness for as long as the war continues.
Toronto, Canada-based Restaurant Brands earned 93 cents per share on an adjusted basis, missing analysts' estimates of 95 cents, according to data compiled by LSEG. Excluding items, Yum logged a profit of $1.37 per share, missing expectations of $1.41.
U.S.-listed shares of Restaurant Brands were down about 3%before the bell on Tuesday, while Yum was slightly higher.
Reporting by Savyata Mishra and Juveria Tabassum in Bengaluru; Editing by Devika Syamnath
Aset Terkait
Berita Terbaru
Pengungkapan: Entitas XM Group menyediakan layanan khusus eksekusi dan akses ke Fasilitas Trading Online kami, yang memungkinkan Anda untuk melihat dan/atau menggunakan konten yang tersedia pada atau melalui situs, yang tidak untuk mengubah atau memperluas, serta tidak mengubah atau memperluas hal tersebut. Akses dan penggunaan ini selalu sesuai dengan: (i) Syarat dan Ketentuan; (ii) Peringatan Risiko; dan (iii) Pengungkapan Penuh. Oleh karena itu, konten disediakan hanya sebagai informasi umum. Anda juga harus ketahui bahwa konten Fasilitas Trading Online kami bukan sebagai ajakan atau tawaran untuk untuk melakukan transaksi apa pun di pasar finansial. Trading di pasar finansial mana pun melibatkan tingkat risiko yang signifikan pada modal Anda.
Semua materi yang diterbitkan di Fasilitas Trading Online kami hanya untuk tujuan edukasi/informasi dan tidak boleh mengandung nasihat dan rekomendasi finansial, pajak investasi atau trading, catatan harga trading kami, penawaran, permintaan, transaksi dalam instrumen finansial apa pun atau promo finansial untuk Anda yang tidak diminta.
Konten pihak ketiga apa pun, serta konten yang disiapkan oleh XM, seperti opini, berita, riset, analisis, harga, informasi lain atau link ke situs pihak ketiga yang tersedia "sebagaimana adanya", sebagai komentar pasar umum dan bukan menjadi nasihat investasi. Sejauh konten apa pun ditafsirkan sebagai penelitian investasi, Anda harus memperhatikan dan menerima bahwa konten tersebut tidak dimaksudkan dan belum disiapkan sesuai dengan persyaratan hukum yang dirancang untuk mempromosikan kemandirian riset investasi dan dengan demikian akan dianggap sebagai komunikasi pemasaran di bawah hukum dan peraturan yang relevan. Mohon dipastikan bahwa Anda telah membaca dan memahami Notifikasi pada Riset Investasi Non-Independen dan Peringatan Risiko kami mengenai informasi di atas, yang dapat diakses disini.
