Yum Brands(NYE: YUM), a fast-food giant, reported quarterly earnings and revenue that exceeded analysts’ expectations. The company’s performance was driven by strong same-store sales growth at Taco Bell. Earnings per Share:
Yum Brands reported earnings per share of $1.31, which was higher than the expected $1.26. The company’s fourth-quarter net income was $371 million, or $1.29 per share, compared to $330 million, or $1.11 per share, in the previous year.
Revenue:
The company reported revenue of $2.02 billion, higher than the expected $1.92 billion. The company’s net sales increased by 7%, and the global same-store sales increased by 6% in the quarter.
Taco Bell Performance:
Taco Bell, Yum Brands’ strongest performer, reported same-store sales growth of 11%, beating the StreetAccount estimates of 6.7%. The company sold 45 million Mexican Pizzas in 2023, which was only available for four months of the year. The CEO of Yum Brands, David Gibbs, said that Taco Bell’s international footprint exceeded 1,000 locations in the quarter.
KFC Performance:
KFC fell short of Wall Street’s expectations as weak sales in China weighed on its results. The chain reported same-store sales growth of 5%, just below the estimates of 5.4%. Excluding China, KFC’s same-store sales increased by 9%.
Pizza Hut Performance:
Weak sales in China also impacted Pizza Hut’s fourth-quarter performance. The chain’s global same-store sales increased by 1%, but its international same-store sales decreased by 1%. The chain’s U.S. same-store sales rose by 4%. The company credited its advertising for attracting lower-income customers back to the chain.
The Habit Burger Grill Performance:
The Habit Burger Grill, Yum Brands’ latest addition, reported that sales at locations open for at least a year shrunk by 1%. However, its system sales, which tracks transactions at all of the chain’s restaurants, climbed by 12% due to Yum’s rapid expansion of the chain.
Conclusion:
Shares of Yum Brands fell less than 1% in premarket trading. The company reported strong earnings and revenue, driven by the performance of Taco Bell. Despite weak sales in China, the company’s overall performance was better than expected.
