Yum Brands misses earnings estimate as costs slash down profit

Yum Brands Inc (NYSE: YUM) on Wednesday said the owner of fast food brands like KFC and Pizza Hut missed quarterly earnings estimates as increased costs of ingredients, labor and packaging material took a bite out of the profit.

Although the restaurant group has been increasing the prices of tacos, fried chicken and pizzas, Yum could not fully counter the blow from a 4% increase in overall expenses.

The war in Ukraine has put supply chain constraints which led to a surge in commodity prices.

The company said comparable sales rose 1%, with Taco Bell posting a better-than-expected 8% increase, making up for a slowdown in sales at KFC and Pizza Hut.