Pizza Hut slump leads to drop in Yum shares

Yum! Brands Inc. still has work do on its pizza business. The diningchain company saw its quarterly results pulled down by a surprise drop in same-stores sales at Pizza Hut, sending the shares down.

The parent company of Taco Bell, KFC and Pizza Hut, which split off its China operations in 2016, has tried to revitalize its pizza brand amid competition from rivals. Yum has been trying to improve the chain’s appeal by embracing delivery, but discounts across the fast-food industry are making it difficult to drive growth.

Pizza Hut comparable sales fell 1 percent in the latest quarter, while analysts had projected a 1 percent gain, according to Consensus Metrix. Globally, Yum’s comparable sales rose 1 percent, missing estimates for 1.9 percent growth.

Pizza Hut has recently expanded its beerdelivery push, and will look to benefit as some consumers dine less at Papa John’s after founder and former chairman John Schnatter admitted to using a racial slur.

In February, Pizza Hut stepped in as the official pizza partner of the NFL, replacing Papa John’s after an earlier controversy over comments Schnatter made about the league’s handling of national anthem protests.

Taco Bell’s samestore sales also missed estimates in the quarter, climbing 2 percent compared to an estimate that called for 2.8 percent growth. KFC gave parent company Yum a boost, posting 2 percent growth in same-store sales to beat the 1.9 percent estimate.