Yum! Brands (NYSE:YUM) on Wednesday reported quarterly earnings that crushed analysts’ expectations as U.S. consumers returned to its restaurants.
The company reported fiscal first-quarter net income rose to $326 million, or $1.07 per share, from $83 million, or 27 cents per share, a year earlier.
Excluding re-franchising gains and other items, Yum earned $1.07 per share, topping the 87 cents per share expected by analysts.
Net sales rose 18% to $1.49 billion, beating expectations of $1.45 billion. Global same-store sales rose 9% in the quarter as the company faced comparisons to last year’s first quarter, when Covid-19 began hurting demand.
KFC’s same-store sales grew by 8%. On a two-year basis, its same-store sales were flat. The fried chicken chain’s international sales are returning at a slower pace, hurt by extended lockdowns in some countries. Its U.S. division, however, reported two-year same-store sales growth of 11%.
Pizza Hut’s same-store sales climbed 12% in the quarter. On a two-year basis, its same-store sales declined 1%. About 3% of its locations were temporarily closed during the first quarter, dragging down its same-store sales growth. Pizza Hut’s U.S. division reported 8% same-store sales growth on a two-year basis, while the international division saw same-store sales shrink by 7% in the same time.
Taco Bell reported same-store sales growth of 9% compared with the year-ago period and 10% on a two-year basis.
Yum shares were propelled 93 cents higher to $117.34.
