Yum! Brands (NYSE:YUM) shares are down premarket Wednesday despite topping second quarter earnings expectations.
The fast food company, which owns the likes of KFC and Taco Bell, reported earnings of $1.41 per share, $0.17 better than the analyst consensus estimate of $1.24.
YUM shares are down 1.73% at the time of writing, trading at $134 per share.
The company reported same-store sales growth of 9%, with KFC posting same-store sales growth of 13%, the largest increase of YUM's brands. It was boosted by its stores in China, with same-store sales in the country up 32% YoY.
However, Pizza Hut's same-store sales growth of 4% disappointed investors, despite the 25% increase in China. Taco Bell's same-store sales also increased by 4%.
"I remain confident we are well positioned to thrive in any consumer spending environment given the broad consumer appeal of our iconic brands, including our craveable products, compelling value and easy experiences," said David Gibbs, YUM's CEO. "With our strong year-to-date results and continued momentum, we expect to deliver full year 2023 results well above our long-term growth algorithm for system sales and core operating profit growth."