Yum Brands (NYSE:YUM) on Wednesday reported mixed quarterly results as COVID lockdowns in China weighed on KFC’s and Pizza Hut’s sales.
Taco Bell, however, reported stronger same-store sales growth in the U.S. It has a much smaller international presence than its sister chains.
Earnings per share were $1.05 adjusted, a bit lower than the expected $1.09.
Revenue was $1.64 billion, in line with expectations.
For the three months ended June 30, Yum reported a net income of $224 million, or 77 cents per share, down from $391 million, or $1.29 per share, a year earlier.
Excluding the impact of pulling out of Russia, refranchising gains and other items, the restaurant company earned $1.05 per share in the second quarter.
Since March, Yum has suspended any investment and development in Russia due to the Kremlin’s invasion of Ukraine. The company has redirected any profits from the business to humanitarian causes as it searches for new owners for its Russian restaurants.
In June, it completed the sale of its Russian Pizza Hut business to an operator that will rebrand the locations.
The company said Wednesday it’s in the “advanced stages” of selling off its KFC business in Russia. After that process is completed, Yum will have exited Russia entirely. The market accounted for 2% of Yum’s system-wide sales in 2021.
Net sales rose 2% to $1.64 billion. The company’s global same-store sales grew 1%, dragged down by COVID lockdowns in China. Excluding China, it reported same-store sales growth of 6%.
YUM shares dipped $1.32, or 1.1%, to $120.81
