Profit of Yum Brands (YUM) for Q3 2021

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.

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