KFC parent Yum Brands reports strong global sales
Yum Brands (YUM), parent company of KFC, Pizza Hut and Taco Bell, reported an earnings beat on both the top and bottom lines, and international sales were better-than-expected.
Same-store sales globally for Yum grew at 2% which was stronger than the 1.8% growth that was projected, according to analysts polled by Bloomberg.
Same-store sales at KFC, Yum’s largest brand, grew at a 3% rate, beating analysts’ estimates of 2.2%.
Sales at Taco Bell stores grew at a better-than-expected rate of 5% which was higher than 3% growth expected by analysts.
However, Pizza Hut reported a sales decline of 1% versus analysts’ consensus of 0.2% growth.
“We are pleased to deliver third-quarter system sales growth of 5%, consisting of same store sales growth of 2% and net new unit growth of 4%. Core operating profit growth of 2% was consistent with our expectations. We are now two years into our three year transformation and remain firmly on-track to becoming more focused, more franchised and more efficient,” CEO Greg Creed said in a statement.
The fast-food chain earned $1.04 per share which was above Wall Street’s expectation of 58 cents per share.
Yum also reported better-than-expected revenue at $1.39 billion versus $1.38 billion.
Shares were 2% higher in pre-market trade on Wednesday.