Signage is displayed outside a Yum! Brands Inc. Taco Bell and Kentucky Fried Chicken (KFC) restaurant in Louisville, Kentucky, U.S., on Thursday, Jan. 30, 2020.
Luke Sharrett | Bloomberg | Getty Images
Yum Brands on Wednesday reported mixed quarterly results as Taco Bell’s and Pizza Hut’s same-store sales dissatisfied.
Shares of the corporate fell lower than 1% in early trading.
related investing news
![We expected more from Starbucks' quarter, but remain believers in the coffee brand](https://image.cnbcfm.com/api/v1/image/107249999-1685711155532-gettyimages-1431177448-_38a6777.jpeg?v=1690935432)
Here’s what the corporate reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.41 adjusted vs. $1.24 expected
- Revenue: $1.69 billion vs. $1.75 billion expected
The restaurant company reported second-quarter net income of $418 million, or $1.46 per share, up from $224 million, or 77 cents per share, a 12 months earlier.
Excluding expenses related to its exit from Russia, refranchising gains and other items, Yum earned $1.41 per share.
Yum executives said on the corporate’s conference call that inflation has peaked and commenced to slow in most developed markets. But emerging markets are still seeing inflation rise.
Net sales rose 3% to $1.69 billion. The corporate’s digital sales increased nearly 30% within the quarter, accounting for nearly half of orders.
Yum Brands’ same-store sales grew 9% within the quarter, topping StreetAccount estimates of 6.9%. The corporate’s restaurants saw growing customer traffic and market share gains, executives said.
KFC’s same-store sales climbed 13%, fueled by returning demand in China, its largest market. KFC’s system sales in China soared 32%, while its U.S. system sales rose 5%. Most of its U.S. growth got here from low-income consumers, Yum CEO David Gibbs said.
Pizza Hut reported same-store sales growth of 4%, missing StreetAccount estimates of 6.3%. The pizza chain’s domestic same-store sales rose just 1%. A few of Pizza Hut’s growth comes from more solo diners, who’re selecting menu items like its Melts, that are folded pizza slices that include a dipping sauce.
Taco Bell’s same-store sales also rose 4%, falling in need of estimates of 4.3%. Its U.S. same-store sales increased 4%, but its international same-store sales shrank 1% within the quarter.
Taco Bell’s U.S. dispute over the name “Taco Tuesday” not only ended with a smaller chain giving up the trademark, but additionally drove more buzz for Taco Bell than the return of the Mexican Pizza, in accordance with Gibbs.
A lot of the Mexican-inspired chain’s locations are within the U.S., even though it has expanded internationally lately.
Yum opened greater than 1,000 recent locations through the quarter.