Vehicles wait in line at the drive through lane of a Yum! Brands Inc. Kentucky Fried Chicken (KFC) and Taco Bell restaurant in Lockport, Illinois, U.S.
Daniel Acker | Bloomberg | Getty Images
Yum Brands on Thursday reported that its quarterly revenue rose 8%, fueled by Taco Bell’s return to positive same-store sales growth.
Shares of the company rose more than 2% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.01, adjusted, vs. 80 cents expected
- Revenue: $1.45 billion vs. $1.42 billion expected
Yum reported third-quarter net income of $283 million, or 92 cents per share, up from $255 million, or 81 cents per share, a year earlier.
Yum’s investment in Grubhub lifted earnings per share by 2 cents this quarter due to changes in its fair value. The KFC owner, which had disputed the terms of the agreement with Grubhub this summer, also said it sold its stake for $206 million.
Excluding expenses from a voluntary early retirement program, restructuring charges and other items, the company earned $1.01 per share, topping the 80 cents per share expected by analysts surveyed by Refinitiv.
Net sales rose 8% to $1.45 billion, beating expectations of $1.42 billion. Same-store sales across Yum fell 2%, but the company’s digital sales set a new record for a single quarter, reaching $4 billion.
Taco Bell reported same-store sales growth of 3%. Last quarter, the chain saw its same-store sales fall 8%, hurt by lower demand from early morning and late-night customers.
Yum’s other brands reported same-store sales declines in the quarter. KFC’s and Pizza Hut’s results were both dragged down by lagging demand in their international markets. KFC’s global same-store sales fell 4%, despite U.S. same-store sales growth of 9%. Pizza Hut reported global same-store sales declines of 3%. The pizza chain’s quarterly same-store sales rose 6% in the United States.
Habit Burger Grill, which Yum bought earlier this year, saw same-store sales fall 5% in the quarter.
Yum permanently closed 267 restaurants during the quarter. Compared with the same time a year ago, its restaurant footprint was up 2%.
