Taco Bell owner Yum Brands earnings top estimates, despite blow of international Covid restrictions

Yum Brands on Thursday reported quarterly earnings and income that topped analyst predictions, despite international eating room closures weighing on same-store gross sales progress at KFC and Pizza Hut.

Shares of the corporate rose lower than 1% in premarket buying and selling.

Here’s what the corporate reported in contrast with what Wall Street was anticipating, primarily based on a survey of analysts by Refinitiv:

• Earnings per share: $1.15, adjusted, vs. $1.01 anticipated
• Revenue: $1.74 billion vs. $1.72 billion anticipated

Yum reported fiscal fourth-quarter internet revenue of $332 million, or $1.08 per share, down from $488 million, or $1.58 per share, a 12 months earlier.

Excluding objects, the corporate earned $1.15 per share, beating the $1.01 per share anticipated by analysts surveyed by Refinitiv.

Net gross sales rose 3% to $1.74 billion, topping expectations of $1.72 billion. Worldwide, the corporate’s same-store gross sales fell 1% through the quarter, and Taco Bell was its solely model to report optimistic same-store gross sales progress.

KFC noticed its general same-store gross sales shrink by 2%. Its U.S. same-store gross sales climbed by 8%, however its international places noticed gross sales at eating places open no less than a 12 months fall by 4%. Only 18% of KFC’s gross sales come from its dwelling market, and China accounts for extra of its system gross sales than the U.S.

Pizza Hut’s same-store gross sales fell simply 1% within the quarter. The coronavirus pandemic has accelerated its U.S. turnaround, serving to it cement its fame for supply and takeout, somewhat than eating in. U.S. same-store gross sales for the pizza chain rose 8% within the quarter. However, outdoors the U.S., Pizza Hut is taking longer to recuperate, and its international same-store gross sales fell 7%.

The Habit Burger Grill, which was acquired by Yum final 12 months, reported same-store gross sales declines of 5%. The burger chain is way smaller than Yum’s different manufacturers.

Yum added 227 internet new eating places through the quarter. Pizza Hut was the corporate’s solely model to shut extra places than it opened.

Read the complete report right here.