Yum! Brands, Inc. (NYSE:YUM) stock fell 0.52% (As on February 8, 11:14:25 AM UTC-4, Source: Google Finance) after the company reported quarterly earnings and revenue that missed analysts’ expectations, noting the Israel-Hamas war hurt its sales. Yum reported fourth-quarter net income of $463 million, or $1.62 per share, up from $371 million, or $1.29 per share, a year earlier. Pizza Hut reported same-store sales declines of 2%, missing expectations of 0.6% growth. The pizza chain’s U.S. same-store sales shrank 4%, while its international same-store sales were flat. Pizza Hut, in particular, saw its sales soften in some markets as a result of the Israel-Hamas war, the company said. Some activists called for a boycott of the pizza chain after Pizza Hut’s Israeli franchisee posted an Instagram story implying it gave free pizza to Israeli soldiers. KFC’s same-store sales rose 2%, coming in below StreetAccount estimates of 4.7%. In the first quarter, KFC’s U.S. team plans to launch the smashed potato bowl and the chain’s first loyalty program to revive sales. Even Taco Bell, usually the gem of Yum’s portfolio, underperformed Wall Street’s expectations. The Mexican-inspired chain reported same-store sales growth of 3%, missing StreetAccount estimates of 3.8%. A year earlier, the chain reported same-store sales growth of 11%, fueled by the permanent return of its cult-favorite Mexican Pizza.

YUM in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.26, missing the analysts’ estimates for the adjusted earnings per share of $1.40, based on a survey of analysts by LSEG, formerly known as Refinitiv. The company had reported the adjusted revenue growth of 1 percent to $2.04 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $2.11 billion. Worldwide system sales grew 5% excluding foreign currency translation, with KFC at 7%, Taco Bell at 6%, and Pizza Hut at 1%. The company had opened 1,853 gross units during the fourth quarter. Restaurant level margins were 17.4%, up 180 basis points year-over-year.

Additionally, during the quarter the Company paid off a $325 million debt maturity with no further significant debt maturities in 2024 or 2025. In addition, the Company announced the acquisition of 218 KFC restaurants in the U.K. and Ireland.

In 2024, Yum plans to pass several major milestones for its global footprint. Yum will surpass 60,000 locations, including a KFC footprint of more than 30,000 restaurants and a Pizza Hut tally of beyond 20,000.