Yum Brands (NYSE:YUM) on Thursday reported quarterly earnings and revenue that topped analyst predictions, despite international dining room closures weighing on same-store sales growth at KFC and Pizza Hut.
Yum reported fiscal fourth-quarter net income of $332 million, or $1.08 per share, down from $488 million, or $1.58 per share, a year earlier.
Excluding items, the company earned $1.15 per share, beating the $1.01 per share expected by analysts.
Net sales rose 3% to $1.74 billion, topping expectations of $1.72 billion. Worldwide, the company’s same-store sales fell 1% during the quarter, and Taco Bell was its only brand to report positive same-store sales growth.
Taco Bell’s same-store sales rose 1% in the quarter. The majority of its locations are in the U.S., where fast-food chains have bounced back quickly from the health crisis.
KFC saw its overall same-store sales shrink by 2%. Its U.S. same-store sales climbed by 8%, but its international locations saw sales at restaurants open at least a year fall by 4%. Only 18% of KFC’s sales come from its home market, and China accounts for more of its system sales than the U.S.
Pizza Hut’s same-store sales fell just 1% in the quarter. The coronavirus pandemic has accelerated its U.S. turnaround, helping it cement its reputation for delivery and takeout, rather than dining in. U.S. same-store sales for the pizza chain rose 8% in the quarter.
However, outside the U.S., Pizza Hut is taking longer to recover, and its international same-store sales fell 7%.
YUM shares slid 38 cents to $104.35.
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