Business Corpus: Yum China's Shares Fall As Q1 Pizza Hut Sales StumbleYum China reports first-quarter earnings after the closing bell today. Check back here for updates. The post Yum China's Shares Fall As Q1 Pizza Hut Sales Stumble appeared first on Investor's Business Daily.

[Collection]

Yum China (YUMC) shares fell after the closing bell after the company's first-quarter same-store sales came up short of expectations, weighed down by a weak performance at Pizza Hut.

Estimates: Wall Street expects the company — which runs KFC, Pizza Hut and Taco Bell locations in China — to report earnings per share of 49 cents, up 11%. System-wide same-store sales are expected to rise 3.3%, with a 3.8% gain at KFC and a 0.3% dip at Pizza Hut, according to Consensus Metrix.

Results: Same-store sales rose 3%. EPS came in at 53 cents. Same-store sales rose 5% at KFC but fell 5% at Pizza Hut.

Total revenues rose 15% to $2.2 billion.

Stock: Shares tumbled 7% after hours in the stock market today. Yum Brands (YUM), the parent company of the three fast-food chains that spun off Yum China in 2016, was unchanged after hours. Yum Brands reports on Wednesday.

The company has been trying to expand its digital and delivery ordering options, while turning around Pizza Hut, and the company noted its difficulties with the chain on Tuesday. In February, the company also warned that its results in 2018 would be competing against "two very successful Chinese New Year promotions" in the past.

Yum China in February said it has also been adding new products to its menus at KFC and Pizza Hut, adding that at KFC "Chinese consumers are continually upgrading their choices, and hence they are increasing the need for more premium ingredients."

During the first quarter, mobile payments made up roughly 56% of Yum China's sales, well up from 31% a year earlier, Yum China said on Tuesday. Online delivery made up 16% of the company's sales, up from 13% a year ago.

CEO Joey Wat said in a statement on Tuesday that the company's focus on "food innovation and customer experience, together with the execution of strategic priorities in digital and delivery, has enabled us, and will continue to enable us, to build a stronger Yum China."

Yum China during the quarter also took an extra 36% stake in Wuxi KFC, an affiliate that operates KFC locations in Wuxi China. The move bumps up Yum China's stake in Wuxi to 83%.

Meanwhile, Yum Brands will be reporting in the wake of the departure of Brian Niccol, who helped turn Taco Bell around, to Chipotle Mexican Grill (CMG). Shares of Chipotle, along with Domino's Pizza (DPZ), jumped after the companies reported earnings last week.

Chipotle edged up 0.2%. McDonald's (MCD), which reported on Monday, fell 2.6%.

YOU MIGHT BE INTERESTED IN:

6 Ways To Play Dow Stocks: Did You Cash In On McDonald's Big Gain?

Will Taco Bell Template Work For Chipotle's New CEO?

Domino's Pizza Just Began Delivery To Parks, Beaches, Thousands Of Hot Spots

The post Yum China's Shares Fall As Q1 Pizza Hut Sales Stumble appeared first on Investor's Business Daily.