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.
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