Yum! Brands Q4 2022 earnings beat estimates
Yum! Brands (YUM), which operates KFC, Pizza Hut, Taco Bell, and Habit Burger Grill, posted its latest quarterly results that beat Wall Street estimates.
In its fiscal fourth-quarter earnings results, Yum! Brands posted same-store sales that beat expectations as consumers were lured in by the brands' value offerings amid higher inflation.
Here's what the compared reported, compared to Wall Street estimates, according to Bloomberg:
Revenue: $2.02 billion versus $1.92 billion expected
Adjusted earnings per share: $1.29 versus $1.26 per share expected
Same-store sales: up 4% versus 4.40% expected
KFC: up 5% versus up 4.84% expected
Pizza Hut: up 1% versus 1.73% expected
Taco Bell: up 11% versus 6.53% expected
Habit Burger Grill unit: down 1% versus 0.86% expected
Revenue came in higher than expected at $2.02 billion. In the quarter, the company added 1,830 total location across its brands. In the full 2022 fiscal year, the company added a total of 4,560 restaurants, which CEO David Gibbs said "beat our own industry record for unit development."
Adjusted fourth quarter earnings per share were $1.31, up 29%, excluding special items like the sale of its Russian KFC restaurants and it operating system and franchise rights there. Under this agreement, the buyer will rename the locations to a non-Yum! Brand and retain employees there.
Taco Bell boosted the company's fourth quarter earnings results. U.S. Sales grew 14%, while international sales grew 23% as customers looked for value and premium offerings. In the quarter, the brand opened 253 total locations, with 496 opened in 24 countries throughout the entire fiscal year as it looks to grow its global presence.
Same-store sales for KFC came in at 5%, only slightly higher than Wall Street estimates of 4.84%. Excluding its China business (its largest business, 25%, followed by the U.S., 15%), same-store sales increased 9% as relaxed COVID restrictions led to higher infection rates at the end of 2022. In the quarter, 997 new KFCs opened and for the full year, 2,447 new restaurants opened across 103 countries.
Pizza Hut same-store sales increased by 1%, but excluding China (which is 16% of its business) sales increased 4% for the quarter. For the full year, excluding China, sales increased 6%. The company has the largest presence in the U.S., 41%. This quarter, Pizza Hut in the U.S. unveiled a new category, melts, that helped to drive customers in-store, but same-store sales were still lower than Wall Street estimates and down compared to this time last year, up 3%. In total, 571 Pizza Huts were opened last quarter with 1,584 in 73 countries opened in 2022 overall.
The Habit Burger Grill Division of Yum! Brands business, which it acquired in 2020, saw same-store sales decline 1% for the quarter and full fiscal year. Last quarter the company opened 9 new store for a total of 33 for the full year.
Premarket shares remained mostly flat following the report.
Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at email@example.com.
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