Yum Brands Inc said it has missed the analysts’ expectations for third-quarter earnings and revenue, whose downward trend is largely because of same-store sales falling at KFC and Pizza Hut. The company posted adjusted earnings per share, or EPS, at $1.37 on the quarter ending September 30, short of the consensus estimate at $1.41 in EPS. Revenue came in at $1.83 billion below the estimated $1.90 billion. Net income declined to $382 million, or $1.35 per share, from $416 million, or $1.46 per share, in the same period last year. Across all geographies, global same-store sales for Yum Brands slipped 2%, and its two biggest chains marked notable declines in their performances, analysts said.

Same-store sales for KFC were down 4%, while having suffered weak performance in the company’s most key international markets, such as the Middle East, Indonesia, and Malaysia, where sales have dived by as much as 45%. In the United States, KFC experienced a 5% decline in same-store sales as well, putting up with increased rivalry from Popeyes.

International markets for Pizza Hut were also confronted with a challenging environment with 6% same-store sales. However, its U.S. operations suffered less at 1%. To stem the downturn, Pizza Hut has been offering more discounts in its markets in China, India, and the Middle East.

Taco Bell was the bright spot in Yum’s portfolio, reporting 4% same-store sales growth. New menu items like Cheesy Street Chalupas as well as the return of Big Cheez-It and a new $7 value meal helped drive consumer interest and overcome industry headwinds that were more caustic than not.

Yum Brands CEO Highlights Challenges and Strategic Shift Amid Global Uncertainty

Yum Brands Chief Executive David Gibbs cited a complex consumer environment, geopolitical tensions, and weakening consumer sentiment across much of the world in which it operates for the disappointing numbers. He noted the company would shift strategies to emphasize value options amid the persistent challenges.