Autos wait in line on the drive by lane of a Yum! Manufacturers Inc. Kentucky Fried Hen (KFC) and Taco Bell restaurant in Lockport, Illinois, U.S.
Daniel Acker | Bloomberg | Getty Photographs
Yum Manufacturers on Thursday reported quarterly earnings and income that topped analysts’ expectations, fueled by sturdy demand for KFC’s fried hen.
Nevertheless, Taco Bell’s perforance was weaker than anticipated, and led to a shortfall in Yum’s same-store gross sales development.
Shares of the corporate fell lower than 1% in premarket buying and selling.
This is what the corporate reported in contrast with what Wall Road was anticipating, based mostly on a survey of analysts by Refinitiv:
- Earnings per share: $1.22 adjusted vs. $1.08 anticipated
- Income: $1.61 billion vs. $1.59 billion anticipated
The corporate reported fiscal third-quarter web revenue of $528 million, or $1.75 per share, up from $283 million, or 92 cents per share, a yr earlier.
Excluding objects, Yum earned $1.22 per share, beating the $1.08 per share anticipated by analysts surveyed by Refinitiv.
Web gross sales rose 11% to $1.61 billion, topping expectations of $1.59 billion. Throughout all of its chains, same-store gross sales elevated by 5%. Wall Road was anticipating same-store gross sales development of 5.8%, based on StreetAccount estimates.
The worldwide unfold of the Covid delta variant weakened demand for Yum’s pizza, hen and tacos in a few of its key markets. Some prospects could have caught to ordering their meals to go. Yum mentioned it’s seeing sustained momentum in digital gross sales.
KFC’s same-store gross sales climbed 6% after falling 4% a yr in the past. Whereas development in China, its largest market, was muted in the course of the quarter, its dwelling market noticed same-store gross sales climb 4%. On a two-year foundation, U.S. same-store gross sales had been up 13%.
Pizza Hut reported same-store gross sales development of 4% as worldwide markets bounced again. In the USA, its same-store gross sales rose by simply 2% because it confronted powerful comparisons to a yr in the past. On a two-year foundation, Pizza Hut’s U.S. same-store gross sales are up 8%.
Taco Bell’s same-store gross sales rose 5% within the quarter and eight% on a two-year foundation. The chain has struggled to get better late-night and breakfast gross sales all through the pandemic. The Mexican-inspired chain’s same-store gross sales had the largest miss of Yum’s portfolio. StreetAccount estimates forecast that the chain would report same-store gross sales development of 6.2%.
Yum added 760 web new places in the course of the quarter, setting a file for the corporate.