Yum Brands announced quarterly earnings and revenue that above analysts’ estimates on Wednesday, thanks to strong same-store sales growth at Taco Bell. Overall, the restaurant behemoth witnessed good demand for its meals in the United States, but lower sales in China impacted on KFC and Pizza Hut’s performance.
Based on a Refinitiv poll of analysts, here’s how Yum reported compared to what Wall Street expected:
• Earnings per share: $1.31 adjusted, compared to $1.26 predicted
• Revenue: $2.02 billion, compared to $1.92 billion predicted
Yum reported fourth-quarter net income of $371 million, or $1.29 per share, an increase from $330 million, or $1.11 per share, the previous year.
The business gained $1.31 cents per share after deducting expenditures related to its decision to quit Russia and other issues.
Net sales increased by 7% to $2.02 billion. In the third quarter, the company’s worldwide same-store sales grew 6%, owing to guests’ strong desire for Taco Bell.
Taco Bell, which is normally the best-performing brand in Yum’s portfolio, posted 11% same-store sales growth, above StreetAccount projections of 6.7%.
KFC fell short of Wall Street’s expectations due to poor performance in China. The fried chicken restaurant posted 5% same-store sales growth, barely shy of the 5.4% predicted.
Pizza Hut’s fourth-quarter performance was also hampered by weak sales in China. Global same-store sales increased by 1%, whereas foreign same-store sales decreased by 1%. Pizza Hut’s same-store sales in the United States increased 4%.
Yum’s newest acquisition, The Habit Burger Grill, reported a 1% drop in revenue at stores open at least a year in the third quarter. However, because to Yum’s quick development of the chain, its system sales, which count transactions at all of the firm’s restaurants rather than just those that have been open 12 months, increased 12%.