A Taco Bell location in New York.
Scott Mlyn | CNBC
Yum Brands on Wednesday reported quarterly earnings that crushed analysts’ expectations as U.S. shoppers returned to its eating places.
Shares of the corporate rose lower than 1% in premarket buying and selling.
Here’s what the corporate reported in contrast with what Wall Street was anticipating, based mostly on a survey of analysts by Refinitiv:
- Earnings per share: $1.07 adjusted vs. 87 cents anticipated
- Revenue: $1.49 billion vs. $1.45 billion anticipated
The firm reported fiscal first-quarter web earnings rose to $326 million, or $1.07 per share, from $83 million, or 27 cents per share, a yr earlier.
Excluding refranchising positive factors and different objects, Yum earned $1.07 per share, topping the 87 cents per share anticipated by analysts surveyed by Refinitiv.
Net sales rose 18% to $1.49 billion, beating expectations of $1.45 billion. Global same-store sales rose 9% within the quarter as the corporate confronted comparisons to final yr’s first quarter, when Covid-19 started hurting demand.
Yum stated that it noticed report digital systemwide sales of greater than $5 billion, helped by accelerated off-premise growth. To additional drive on-line sales, the company bought two tech start-ups, Tictuk and Kvantum, in the course of the quarter. Tictuk permits clients to order meals whereas on social media and messaging apps, and Kvantum makes use of synthetic intelligence for shopper insights and advertising efficiency analytics. Financial phrases for each offers weren’t disclosed.
KFC’s same-store sales grew by 8%. On a two-year foundation, its same-store sales had been flat. The fried rooster chain’s worldwide sales are returning at a slower tempo, damage by prolonged lockdowns in some nations. Its U.S. division, nevertheless, reported two-year same-store sales growth of 11%.
Pizza Hut’s same-store sales climbed 12% within the quarter. On a two-year foundation, its same-store sales declined 1%. About 3% of its areas had been quickly closed in the course of the first quarter, dragging down its same-store sales growth. Pizza Hut’s U.S. division reported 8% same-store sales growth on a two-year foundation, whereas the worldwide division noticed same-store sales shrink by 7% in the identical time.
Taco Bell reported same-store sales growth of 9% in contrast with the year-ago interval and 10% on a two-year foundation.
The Habit Burger Grill, which Yum acquired in the course of the first quarter final yr, reported same-store sales growth of 13%. On a two-year foundation, its same-store sales rose 3%.
Yum added 435 web new eating places to its worldwide footprint in the course of the quarter. KFC and Taco Bell grew their complete unit counts, however Pizza Hut’s fell.