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Yum Brands has lost analysts’ estimates for the second quarter of Tuesday, affected by higher ingredient costs and a change that weighed his activities, including Taco Bell, sending his shares of 4%.The concerns about the impact of strong rates and economic growth detoled the expense for US consumers to eat outside, pushing the fast food chains, including Yum Brands, McDonald’s and Burger King -own Restaurant Brands, to launch agreements for economic meals to increase pedestrian traffic.
Taco Bell, which represents 38% of the company’s total revenues, launched boxes ranging from $ 5 to $ 9. However, its growth in sales in the same shop in the United States – the largest market – slowed down to 4% in the quarter from 5% of a year before.
Among the other chains of restaurants, Chipotle Mexican Grill has reduced the annual sales forecasts and quarterly quarterly sales estimates on weak demand. McDonald’s, destined to report the results on Wednesday, also felt difficult conditions in May in case of tariff uncertainty. “With the growing concerns about rates and a weakening of the labor market, consumers are thinking twice about where and when they eat … they chase experiences guided by the value they offer more Blash for their dollar,” said Zak Stambor, analyst with Emaketer.
The unpredictable unpredictable commercial policies of the Trump administration have also made more difficult for companies to plan the operations, interrupted the supply chains and an increase in costs.
Yum provides for inflation pressures on several key construction products from Mexico and Canada for the rest of the year, said Chris Turner, CEO coming, during the post-users call.
Its sales worldwide increased by 2% during the quarter closed to 30 June, while analysts estimated an increase of 2.37%, according to the data compiled by LSEG.
Excluding the articles, he earned $ 1.44 per share, lacking the estimate of $ 1.46 per share, due to the highest advertising expenditure and high input costs.
Total costs and expenses during the quarter increased by 13%.
The company, which also has Kfc and Pizza Hut, has recorded $ 1.93 billion entrances, compared to the estimate of $ 1.94 billion.
