Yum Brands first-quarter earnings top expectations on KFC and Taco Bell sales
Yum Brands reported adjusted earnings of 82 cents per share, topping analysts' expectations of 81 cents per share.
The company's revenue of $1.25 billion was in line with estimates.
The fast food conglomerate owns Taco Bell, KFC and Pizza Hut.
The parent company of fast-food franchises KFC, Taco Bell and Pizza Hut reported first-quarter earnings Wednesday that beat Wall Street's expectations.
Yum Brands YUM shares rose by less than 1% in premarket trading.
"First-quarter results were a solid start to the year, reflecting particular strength at the KFC division and Taco Bell U.S.," CEO Greg Creed said in a statement. "With this quarter, we have a healthy foundation to help us achieve our 2019 guidance."
Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
Adjusted earnings per share: 82 cents vs. 81 cents expected
Revenue: $1.25 billion, matching expectations
Same-store sales: up 4%, vs. 2.66% increase expected
On an unadjusted basis, Yum's first-quarter net income slid 39% to $262 million, or 83 cents per share, from $433 million, or $1.27 per share, a year earlier. Yum's roughly 3% stake in Grubhub GRUB shaved 5 cents off of its earnings per share during the quarter.
Excluding refranchising gains, a tax expense on special items and other items, Yum earned 82 cents per share, topping the 81 cents per share expected by analysts surveyed by Refinitiv.
Net sales dropped 9% to $1.25 billion, which was in line with expectations. The company reported worldwide same-store sales growth of 4%, beating Wall Street's estimates of 2.66%. Sales at Pizza Hut stores open at least a year were flat during the quarter. KFC reported same-store sales growth of 5%, while Taco Bell's same-store sales increased by 4%.
Yum opened 310 net new stores during the quarter ended March 31.
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