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StockBeat - Yum Brands Q2 Performance Leaves Investors Hungry for More

Investing.com – Yum Brands' better-than-expected second-quarter results Thursday, led by a rise comparable-sales growth, whetted investor appetite sending its shares markedly higher.

The fast-food operator reported earnings of $0.93 a share, up from $0.82 a year earlier, with revenue falling to $1.31 billion from $1.37 billion. The results were above consensus estimates from Investing.com for earnings of $0.87 a share on revenue of $1.28 billion.

Yum! Brands (NYSE:YUM) shares rose about 4% by 1:50 p.m. ET (17:50 GMT) and are up more than 28% this year.

Yum! Brands is the parent of the KFC, Pizza Hut and Taco Bell chains.

The beat was driven by a 5% climb in comparable-sales during the quarter, well above analysts' estimates of 2.9%.

A finger lickin' good quarter of growth at KFC and modest growth at Pizza Hut restaurants system-wide both exceeded expectations. But Taco Bell results were even better.

"Second-quarter results maintained early year momentum and helped us to exceed our already high expectations for a strong first half of 2019," Chief Executive Greg Creed said.

KFC comparable-store sales rose 6% in the quarter, above analysts' expectations of 3.68%, while Pizza Hut reported growth of 2%, topping estimates for a 1.10% increase. Taco Bell, meanwhile, delivered 7% comparable-store sales growth; analysts had expected only 3.75% comparable sales growth.

Yum maintained its full-year earnings guidance of at least $3.75 a share, below the Street's consensus of $3.82.

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