Yum Brands (NYSE:YUM) on Wednesday reported quarterly earnings that beat analysts’ expectations.
Earnings per share proved to be 82 cents, adjusted, vs. 81 cents expected. Revenue was $1.25 billion, matching expectations. Same-store sales: up 4%, as opposed to a 2.66% increase expected
Taco Bell’s parent company reported fiscal first-quarter net income of $262 million, or 83 cents per share, down from $433 million, or $1.27 per share, a year earlier.
Excluding items, Yum earned 82 cents per share, topping the 81 cents per share expected by analysts. Net sales dropped 9% to $1.25 billion, in line with expectations.
CEO Greg Creed said, "The third and final year of our transformation is underway and I’m thrilled with the progress towards our commitment to becoming a more focused, more franchised, and more efficient growth company.
"First-quarter results were a solid start to the year, reflecting particular strength at the KFC division and Taco Bell U.S. With this quarter, we have a healthy foundation to help us achieve our 2019 guidance."
Yum opened 310 net units in the quarter. On a year-over-year basis, which takes into account the strategic alliance with Telepizza in the fourth-quarter 2018, net new unit growth was 7%. The corporation also repurchased 1.1 million shares totaling $106 million at an average price of $94.
Worldwide system sales excluding foreign currency translation grew 8%, with KFC at 9%, Taco Bell at 7%, and Pizza Hut at 7%.
Shares skidded $2.16, or 2.1%, to $102.23.
