Business
Yum Brands posts mixed quarter, Taco Bell shines
A customer enters a Taco Bell restaurant in El Cerrito, California, US, on Tuesday, April 29, 2025.
David Paul Morris | Bloomberg | Getty Images
Yum Brands on Wednesday reported mixed quarterly results, despite strong demand for Taco Bell.
Here’s what the company reported for the period ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $1.73 adjusted vs. $1.77 expected
- Revenue: $2.51 billion vs. $2.45 billion expected
Yum reported fourth-quarter net income of $535 million, or $1.91 per share, up from $423 million, or $1.49 per share, a year earlier. The company’s tax rate was higher than anticipated by Wall Street, according to Kalinowski Equity Research.
Excluding tax benefits, acquisition costs and other one-time items, the restaurant company earned $1.73 per share.
Net revenue rose 6% to $2.51 billion.
Yum’s global same-store sales increased 3%, fueled by strong performance at Taco Bell and in KFC’s international markets.
Taco Bell’s same-store sales spiked 7% in the quarter, topping Wall Street expectations of 5.6% growth, according to StreetAccount.
The Mexican-inspired chain is the gem of Yum’s portfolio, regularly outperforming the broader fast-food industry, thanks to a mix of value offerings and buzzy menu items. The chain is stealing market share from competitors, and consumers aged 18 to 24 years old are flocking to its restaurants, Yum CEO Chris Turner said on the company’s conference call.
KFC saw its global same-store sales rise 3%. The fried chicken chain’s international locations reported same-store sales growth of 3%, while restaurants in the U.S. saw a same-store sales increase of 1%.
Wall Street analysts had expected KFC to report same-store sales growth of 2.1%, according to StreetAccount.
KFC has been undergoing a turnaround in its home market, where it has ceded market share to upstarts like Raising Cane’s in recent years. To win back customers, it is taking some cues from Taco Bell’s successful playbook. The chain is planning to unveil new menu items, like sauces and beverages, at a more rapid pace than it previously did. The chain will also try to offer customers more affordable options, whether it is a “profitable low-price point products” or targeted individual value offers, executives said on the company’s conference call.
And once again, Pizza Hut was the laggard of the portfolio. The embattled pizza chain reported that its same-store sales declined 1%, driven by a 3% drop in the U.S. and slightly edging out Wall Street estimates of a 1.7% decline during the period.
In November, the company said it would explore strategic options for Pizza Hut. Yum on Wednesday said that the review had begun but did not share more details.
“As of now, we intend to complete the review of options this year,” Turner said. “Given the ongoing nature of the process at this time, we cannot share further details on the strategic review.”
While Pizza Hut undergoes the review, Yum is also implementing a strategy that will act as a “bridge to a longer-term acceleration of the brand,” according to CFO Ranjith Roy. As part of that plan, Pizza Hut will shutter about 250 underperforming U.S. locations in the first half of the year.
Business
US and Bangladesh strike new trade deal — key terms of the agreement – The Times of India
The United States and Bangladesh on Monday finalised the United States–Bangladesh Agreement on Reciprocal Trade, wrapping up negotiations as both countries stepped in to strengthen bilateral economic ties. Under the revised framework, Bangladeshi exports to the American market will attract a 19% tariff, marginally lower than the 20% imposed in August and significantly below the original reciprocal rate of 37%. The agreement was signed by US Trade Representative Jamieson Greer and Bangladesh’s Adviser for Commerce, Textiles and Jute, and Civil Aviation and Tourism, Sheikh Bashir Uddin, in the presence of Bangladesh Commerce Secretary Mahbubur Rahman and Assistant US Trade Representative Brendan Lynch.
Key terms of the agreement
- Perks for Bangladesh: Washington will reduce the reciprocal tariff imposed under Executive Order 14257 to 19% on Bangladeshi goods. In addition, selected products listed in Annex III of Executive Order 14346 will qualify for a zero-tariff rate. The United States has committed to creating a mechanism under which certain textile and apparel products from Bangladesh can qualify for a zero reciprocal tariff rate. Under this arrangement, a yet-to-be-finalised volume of garments and textile imports from Bangladesh will be allowed to enter the US at the reduced rate. The permitted volume will depend on Bangladesh’s imports of American textile inputs, such as US-produced cotton and man-made fibres, effectively tying the benefit to the level of US exports.
- Perks for US: Bangladesh will grant wide preferential entry to US industrial and agricultural products, covering chemicals, medical devices, machinery, automobiles and components, ICT equipment, energy supplies, soy items, dairy, beef, poultry, nuts and fruit.
- Both governments will seek to remove Bangladeshi non-tariff barriers affecting trade and investment. Measures include recognising vehicles meeting US federal safety and emission rules, accepting US Food and Drug Administration certificates and prior approvals for pharmaceuticals and medical devices, and ending import restrictions or licensing on US remanufactured products and parts.
- Bangladesh will enable trusted cross-border data flows, support a lasting WTO ban on customs duties for electronic transmissions, rely on science- and risk-based systems for safe American food and farm imports, open up the insurance sector, digitise customs and adopt sound regulatory practices.
- Commitments have also been made on labour. Bangladesh will act to uphold internationally recognised rights, prohibit imports made through forced or compulsory labour, amend legislation to secure freedom of association and collective bargaining, and tighten enforcement.
- Dhaka has pledged to maintain strong environmental safeguards, implement its environmental laws, improve trade facilitation at the border and tackle market distortions linked to subsidies and state-owned firms. Furthermore, the South Asian giant has committed to reinforce and apply comprehensive anti-corruption legislation.
- On intellectual property, Bangladesh will pursue tougher protection and enforcement, including ratifying or joining certain global treaties. It will also introduce provisions on geographical indications aimed at ensuring continued US market access, particularly for producers of cheese and meat that use common names.
- The two countries intend to align more closely on economic and national security matters, strengthening supply chains and innovation while working together against unfair trade practices, duty evasion, export control risks and by exchanging information on inbound investment.
- American agencies such as the Export-Import Bank and the US International Development Finance Corporation may, where eligible and in accordance with law, look at backing investment in priority Bangladeshi sectors alongside US private firms.
- The two countries also acknowledged recent and upcoming commercial agreements spanning agriculture, energy and technology. These include the procurement of aircraft, the purchase of around $3.5 billion worth of American agricultural commodities such as wheat, soy, cotton and corn, and energy imports estimated to be valued at $15 billion over the next 15 years.
Both sides said they would proceed promptly, following their respective internal processes, to complete formalities required for the Agreement on Reciprocal Trade to take effect.
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