Vehicles are waiting in line at the Yum! Brands Inc. Kentucky Fried Chicken (KFC) and Taco Bell Restaurant in Lockport, Illinois, USA
Daniel Acker | Bloomberg | Getty Images
On Thursday, Yum Brands reported quarterly earnings and revenues that exceeded analyst expectations, boosted by strong demand for KFC’s fried chicken.
The company’s shares rose more than 1% premarket.
Here’s what the company said compared to Wall Street’s expectations, based on a survey by Refinitiv analysts:
- Earnings per share: Adjusted $ 1.22 versus $ 1.08 expected.
- Revenue: $ 1.61 billion vs. $ 1.59 billion expected
The company reported fiscal third quarter net income of $ 528 million, or $ 1.75 per share, up from $ 283 million, or 92 cents per share, a year earlier.
Excluding items, Yum earned $ 1.22 per share, surpassing the $ 1.08 per share expected by analysts surveyed by Refinitiv.
Net sales rose 11% to $ 1.61 billion, beating expectations of $ 1.59 billion. Across all chains, sales in the same stores increased by 5%. According to StreetAccount estimates, Wall Street expected sales in the same store to grow 5.8%. The global spread of the Covid delta variant has weakened demand for Yum pizza, chicken and tacos in some key markets.
KFC’s brick-and-mortar sales are up 6% after falling 4% a year ago. While growth in China, its largest market, was modest during the quarter, domestic sales in the same stores rose 4%. In two years, sales at the same stores in the United States rose 13%.
Pizza Hut reported a 4% increase in sales in the same stores as international markets bounced back. In the United States, sales at the same stores were up just 2% year over year. In two years, Pizza Hut sales in the same stores in the United States grew 8%.
Taco Bell sales in brick-and-mortar stores rose 5% in the quarter and 8% in two years. The chain has struggled to restore its nightlife and breakfast sales during the pandemic. Sales of namesake stores in the Mexican-inspired chain were the biggest miss in Yum’s portfolio. StreetAccount estimates that the chain will report a 6.2% increase in sales in the same store.
During the quarter, Yum added 760 new outlets, a record for the company.