On Thursday, the 6th of February, the Louisville, Kentucky-based American fast food chain company that operates long-hailed brands likes of KFC, Pizza Hut and Taco Bell, Yum Brands Inc. had revealed its quarterly earnings’ report for Q4, 2019, which missed an analysts’ estimate by far, as a flurry of fierce competition from plant-based meat manufacturers alongside other local rivals had been skirting a bigger bite of Pizza Hut market shares in the United States.
On top of that, during a post-earnings’ call, the Yum Brands Inc. Chief Executive, David Gibbs had also forecasted a fallout in profits this year amid an outbreak of deadly coronavirus that led to the death of 637 people in last two weeks and infected more than 31,000 in China, one of largest fast-food markets across the globe with the United States leading the tally, eventually send its shares tumbling by more than 4.7 per cent to $102.00 per share on Thursday’s (February 6th) after-market trading.
Meanwhile, referring to Pizza Hut’s struggle to grapple with a stiffer market competition across the globe from established rivals likes of Domino’s Pizza, Gibbs said on Thursday’s (February 6th) post-earnings’ call with the reporters, “Obviously, there’s a lot of work to be done there.
For so many years, people associated takeout and delivery solely with pizza. And now... these online delivery companies have expanded the universe of what people take into consideration when they order out. ” Apart from that, according to Yum Brands Inc.’s Q4, 2019, earnings’ result that revealed on Thursday (February 6th), the company’s net income surged to $1.58 per share or $488 million, up from a net income of $334 million a year earlier, while excluding the one-time items, Yum Brands Inc.’s operational profit had been $1 per share during the quarter that ended of December 31st, 2019, missing an analysts’ estimate of $1.13 per share.