Yum Brands Inc’s disappointing Pizza Hut and Taco Bell results, along with other data, suggested the U.S. fast-food business remained weak in the second quarter and that industry leader McDonald’s Corp continues to struggle.
The U.S. fast-food segment has lagged the broader restaurant sector, due to weak job growth and stagnant pay among the lower-wage diners who frequent such restaurants. The sector also is struggling to remain relevant as more consumers move away from decadent food like cheeseburgers and french fries to fresher, healthier fare.