Oct 29, 2020
KFC owner Yum reports sales that beat analysts' estimates
Bloomberg News
,Christine Poole discusses YUM! Brands
Yum! Brands Inc., the owner of brands KFC, Taco Bell and Pizza Hut, reported third-quarter sales that surpassed analysts’ expectations, calling the results “encouraging” as it continued to reopen locations that were closed during the pandemic.
-Same-stores sales, a key metric for restaurant operators, dropped two per cent last quarter, while the projection from Consensus Metrix was for a decline of four per cent. Earnings per share also beat estimates.
Key Insights
-Yum, which had struggled with a slow international recovery during the pandemic, saw growth of one per cent in international sales this quarter, excluding the impact of currency.
-Global sales were driven by Taco Bell, which was up five per cent and helped offset declines in KFC and Pizza Hut
-For the second consecutive quarter, digital sales rose by more than US$1 billion from a year earlier.
Market Reaction
-Yum shares rose 1.5 per cent on Thursday in light early New York trading. The stock dipped 5.6 per cent this year through Wednesday’s close.