In 4Q17, Yum! Brands (YUM) posted revenue of $1.58 billion, which represents a fall of 16.3% from $1.9 billion in 4Q16. Its 4Q17 revenue was lower than analysts’ estimate of $1.59 billion. Its revenue fell 1.8%, 4%, and 5.2% in 1Q17, 2Q17, and 3Q17, respectively. The refranchising of company-owned restaurants led to the fall in revenue.
The KFC segment posted revenue of $814 million, which represents a fall of 11.8% from $923 million in 4Q16. In 2017, the brand refranchised 828 company-owned restaurants, which led to a decline in its 4Q17 revenue. However, some of the declines were offset by the net addition of 844 restaurants in the last four quarters and a positive SSSG (same-store sales growth) of 3%.
Revenue from the Pizza Hut segment fell 24.3% from $309 million to $234 million in 4Q17. The refranchising of 389 company-owned restaurants in the last four quarters led to the fall. However, some of the declines in revenue were offset by the net addition of 328 restaurants and positive SSSG of 1%.
The Taco Bell segment posted revenue of $531 million, which represents a fall of 18.8% from $654 million in 4Q16. The refranchising of 253 company-owned restaurants in 2017 led to the fall. However, some of the revenue declines were offset by the addition of 237 restaurants in the last four quarters and positive SSSG of 2%.