(Reuters) -Yum Brands Inc missed Wall Street estimates for quarterly revenue and profit on Wednesday, as a fall in U.S. sales at Pizza Hut chain due to staffing shortages overshadowed growth at KFC and Taco Bell.
Pizza Hut rival Domino's Pizza (NYSE:DPZ) Inc also missed quarterly sales estimates last week and warned staffing shortages and inflation would pressure its business further into the year.
Same-store sales at U.S. Pizza Hut locations fell 6% in the first quarter, while it rose 1% and 5% at KFC and Taco Bell restaurants, respectively.
Shares of Yum declined around 4% in premarket trading, having dropped about 17% drop so far this year.
Total revenue rose to $1.55 billion from $1.49 billion a year earlier, but missed estimates of $1.59 billion.
Hourly workers have been turning to higher paying jobs in a tight labor market, leaving U.S. restaurants scrambling to staff their outlets adequately and recruit delivery drivers to fulfill online orders.
The labor crunch has hit when a strained supply chain has already made it harder for restaurants to meet consumer demand.
For Louisville, Kentucky based Yum, comparable sales rose 3% in the quarter ended March 31, missing analysts' average estimate for a 3.8% increase, according to Refinitiv data.
Net income rose to $399 million, or $1.36 per share, from $326 million, or $1.07 per share, a year earlier.
Excluding one-time items, Yum Brands earned $1.05 per share, missing estimates of $1.07.