The parent company of KFC, Pizza Hut and Taco Bell, Yum! Brands (YUM) - Get Report , on Wednesday served up third-quarter earnings and revenue that fell short of analysts' expectations, even after lowering the book value of its investment in Grubhub (GRUB) - Get Report and taking a hit of 15 cents a share for it.
The Louisville, Kentucky-based company posted fiscal third-quarter net income of $255 million, or 81 cents a share, vs. $454 million, or $1.40 a share, a year earlier. Adjusted earnings were 80 cents a share. Analysts polled by FactSet had been expecting earnings of 96 cents a share. The company said it revalued its stake in online food delivery service Grubhub, which shaved 15 cents off its third-quarter per-share earnings.
Revenue came in at $1.34 billion, down 4% from $1.39 billion a year ago and below analysts' forecasts. Same-store sales, a key metric in retail, gained 3% during the quarter, below estimates of 3.3%, while systems sales growth gained 8%.
"Following a very strong first half of 2019 and in line with our expectations, third-quarter results were consistent with our long-term growth model," CEO Greg Creed said in a statement, noting that 2019 will mark the end of both the company's three-year transformation and his tenure as CEO.
David Gibbs will replace Creed as CEO next year when he retires.
Shares of Yum! Brands were down 7.79%, or $8.54 a share, at $101.11 in morning trading on Wednesday. Grubhub shares were up 2.64%, or 88 cents a share, at $33.98.
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