KFC parent Yum Brands reports surprise drop in global same-store sales on weak demand

May 1 (Reuters) - Yum Brands reported a fall in quarterly global same-store sales on Wednesday, hurt by choppy demand for its KFC and Pizza Hut brands from inflation-weary consumers in the United States as well as in overseas markets.

Consumers in the United States are increasingly looking for value-oriented meals in the face of sticky inflation, pushing fast food chains to double down on promotions and offers and on revamping their store and order experiences.

Yum Brands joined coffee giant Starbucks in recording its first drop in total same-store sales in about three years.

"As expected, same-store sales were pressured this quarter, but we are encouraged by strong two-year same-store sales growth and positive momentum exiting the quarter," said CEO David Gibbs.

Yum Brands' total revenue fell nearly 3% to $1.60 billion in the first-quarter ended March 31, missing analysts' estimates of $1.71 billion, as per LSEG data.

The company's worldwide same-store sales fell 3% in the first-quarter, while analysts were expecting a growth of 0.04%.

The launch of KFC's first-ever loyalty program in the reported quarter failed to drum up demand for the fast food giant, as consumers continued to look for cheaper alternatives, including meals at home.

This comes in contrast to results at pizza chain Domino's , which reaped benefits from a revamped loyalty program that has kept consumers hooked over the last two quarters.

Global same-store sales at its KFC restaurants fell 2%, while that of Pizza Hut dropped 7%.

Taco Bell posted an increase of 1%, compared with estimates of 2.83%. (Reporting by Juveria Tabassum; Editing by Shailesh Kuber)