Business Corpus: Taco Bell Parent Yum Brands Dives Below Key Levels On Weak Same-Store SalesTaco Bell parent Yum Brands Q1 profit that beat forecasts, amid a strong earnings season for restaurant chains overall, but mostly weak same-store sales. The post Taco Bell Parent Yum Brands Dives Below Key Levels On Weak Same-Store Sales appeared first on Investor's Business Daily.

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Taco Bell parent Yum Brands (YUM) reported Q1 profits that beat forecasts, amid a strong earnings season for restaurant chains overall, but mostly weak same-store sales.

Estimates: Wall Street expects EPS to jump 5% to 68 cents, according to Zacks Investment Research, while revenue falls 24% to $1.078 billion. Consensus Metrix saw systemwide same-store sales ticking up 2%, rising 2.8% at KFC, 1.8% at Pizza Hut and 0.5% at Taco Bell.

Results: EPS of 90 cents on revenue of $1.37 billion. Same-store sales rose 1%, with KFC up 2%, Pizza Hut 1% and Taco Bell 1%.

"As a result of the timing mismatch between re-franchising and associated G&A savings and the new revenue recognition accounting standard, core operating profit growth was flat, which is consistent with our expectations," CEO Greg Creed said. "We're maintaining all aspects of our full-year 2018 guidance and remain confident that this transformation is building a strong foundation for long-term growth and will deliver increased returns for our stakeholders."

Stock: Shares in Yum Brands tumbled 7.55% to 80.10 on the stock market today, undercutting an 84.03 entry from an 8-week cup-with-handle base cleared last month. Yum Brands also knifed below its 50-day moving average.

Yum China (YUMC), which beat Q1 earnings views late Tuesday but missed on KFC comp sales, plunged 14.2% to the lowest level since September. Yum China tumbled overnight when same-store sales came up short of expectations, weighed down by a weak performance at Pizza Hut.

Among other fast-food stocks, McDonald's (MCD), which beat estimates earlier this week, slid 1.7%. Burger King parent Restaurant Brands International (QSR), which beat last week, was down 0.3%.

Despite Yum China's stumble, the restaurant sector has started the earnings season strong.

In addition to McDonald's and Restaurant Brands beating views, Chipotle Mexican Grill (CMG) and Domino's Pizza (DPZ) soared last week after topping profit forecasts. So did BJ's Restaurants (BJRI).

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