Yum Brands tops earnings estimates as sales rebound at Taco Bell, KFC and Pizza Hut
- Yum Brands reported second-quarter earnings and revenue that topped analyst expectations.
- The company reported record new store openings for the quarter.
- Same-store sales grew at all three of its major brands: KFC, Pizza Hut and Taco Bell.
- Shares of Yum were up more than 2% in premarket trading.
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Yum Brands on Thursday reported quarterly earnings and revenue that topped analyst predictions as same-store sales grew at all of its major brands, and it opened new restaurants at a record pace.
Shares of Yum rose more than 2% in premarket trading.
Here's how the company did for its second quarter ended June 30 compared with what analysts surveyed by Refinitiv were anticipating:
- Earnings per share: $1.16 vs. 96 cents expected
- Revenue: $1.6 billion vs. $1.48 billion expected
During its second quarter, the company reported a net income of $391 million, or $1.29 per share, compared with $206 million, or 67 cents per share, from a year earlier.
Excluding refranchising gains and other items, Yum earned $1.16 per share, beating the 96 cents per share expected by analysts surveyed by Refinitiv.
The company's revenue grew 34% from last year to $1.6 billion, and outpaced expected revenue of $1.48 billion. Worldwide same-store sales grew 23% in the quarter.
Yum said it opened 603 net new locations during the quarter and it plans to pick up the pace of its expansion by reinstating its long-term growth targets. Yum said it plans to grow the number of restaurants it operates by between 4% and 5% over the long term.
KFC's same-store sales grew 30% in the quarter, led by growth in the U.S. On a two year basis, same-store sales were up 2%. KFC's international same-store sales fell 1% over the two-year period as 2% of KFC stores remain temporarily closed as of the end of its second quarter. U.S. same-store sales grew 19% on a two-year basis as pandemic restrictions ease and diners came back.
Pizza Hut's same-store sales grew 10% this quarter. The brand's same-store sales grew 1% on a two-year basis. Only 2% of its stores were still temporarily shut during the quarter. U.S. same-store sales jumped 9% on a two-year basis, while international same-store sales shrunk 6%.
Taco Bell's same-store sales grew 21% in the quarter. On a two-year basis, its same-store sales rose 12%.
Read the full press release from Yum Brands here.
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