Yum Brands (NYSE:YUM) on Wednesday reported quarterly earnings that missed analysts’ expectations as the strong U.S. dollar weighed on its results.
Revenue came in above expectations, however, as same-store sales rose at its KFC, Pizza Hut and Taco Bell chains.
Earnings per share came in at $1.09 adjusted vs. $1.14 expected, on revenue of $1.64 billion vs. the expected $1.62 billion.
Net sales rose 2% to $1.64 billion. Worldwide, Yum’s same-store sales increased 5% in the quarter, topping StreetAccount estimates of 2.5%. More than 40% of Yum’s transactions came from digital channels, like its mobile app.
KFC reported same-store sales growth of 7%, beating Wall Street’s estimates of 2%. Excluding China, its largest market, same-store sales climbed 9%.
In October, Yum announced it reached a deal to sell its Russian KFC restaurants to a local operator, allowing it to fully exit the country.
Taco Bell’s same-store sales rose 6% in the quarter, falling short of expectations of 7.5%. In the U.S., same-store sales rose 7%. The Mexican-inspired chain is typically the strongest performer in Yum’s portfolio.
Pizza Hut reported same-store sales growth of 1%, beating Wall Street’s projections that its same-store sales would decline.
For the quarter ended Sept. 30, Yum reported a net income of $331 million, or $1.14 per share, down from $528 million, or $1.75 per share, a year earlier. The company said foreign currency rates weighed on its earnings per share by 10 cents.
YUM shares acquired 33 cents to $118.48.
