KFC, Pizza Hut and Taco Bell parent Yum! Brands (YUM) served up a third-quarter earnings and revenue miss, even after lowering the book value of its investment in Grubhub undefined and taking a hit of 15 cents a share for it.
The 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.
That prompted investors to ditch the stock, with shares dropping nearly 8%, or $8.54 a share, to $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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