At Yum! Drive-Thru Lane, vehicles wait in line. Brands Inc. Kentucky Fried Chicken and Taco Bell restaurants in Lockport, Illinois, U.S.
Yum Brands reported Thursday its quarterly earnings and revenue, surpassing analysts' expectations. This was due to strong demand for KFC's Fried Chicken.
However, Taco Bell's perforance proved to be weaker than anticipated, which led to a decrease in Yum's same store sales growth.
Premarket trading saw shares of the company fall less than 1%
Based on an analysis of analysts by Refinitiv, here's what the company reported in comparison to what Wall Street expected.
Earnings per Share: $1.22 adjusted vs. expected $1.08
Revenue: $1.61 Billion vs. $1.59 Billion expected
The company reported fiscal third quarter net income of $528million, or $1.75 per stock, an increase from $283 million or 92cs per share a year ago.
Yum earned $1.22 per Share, excluding items, which beat the $1.08 per Share expected by Refinitiv analysts.
Net sales increased 11% to $1.61 Billion, surpassing expectations of $1.59 Billion. Same-store sales rose by 5% across all its chains. StreetAccount estimates that Wall Street expected same-store sales growth to be 5.8%.
Yum's chicken, pizza and tacos suffered from the global spread of Covid delta. Some customers may prefer to order food to go. Yum claims it is experiencing sustained momentum in digital sales.
KFC saw its same-store sales rise 6%, compared to a decline of 4% last year. Although China was its largest market, KFC saw its same-store sales rise 4% in its home market. The U.S. saw an increase of 13% in same-store sales over the past two years.
Pizza Hut saw a 4% increase in same-store sales as international markets rebounded. The United States saw a 2% increase in same-store sales despite having to make tough comparisons with a year ago. Pizza Hut's U.S. sales in same-stores are up by 8% over the past two years.
Taco Bell saw its same-store sales rise 5% in the third quarter and 8% over a two year period. The chain has had a difficult time recovering late-night and breakfast sales during the pandemic. Yum's biggest failure was in Yum's same-store sales. It is a Mexican-inspired chain. StreetAccount forecasts that the chain will report 6.2% growth in same-store sales.
Yum opened 760 new locations in the quarter, a record for Yum.