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August 4, 2023 :Yum Brands, the parent company of Taco Bell, Pizza Hut, and KFC, released its quarterly results, revealing a mixed performance marked by varying same-store sales outcomes.
In the second quarter, Yum reported adjusted earnings per share of $1.41, surpassing the expected $1.24, while revenue came in at $1.69 billion, slightly lower than the anticipated $1.75 billion.
The company’s net income for the quarter was $418 million, or $1.46 per share, a significant increase from the previous year’s $224 million, or 77 cents per share. Adjusted for factors such as exit expenses from Russia and refranchising gains, Yum’s earnings per share stood at $1.41.
Executives noted that inflation appears to have peaked and is decelerating in developed markets, though emerging markets continue to experience rising inflation.
Net sales saw a 3% increase, reaching $1.69 billion. Digital sales surged by nearly 30% during the quarter, accounting for nearly half of total orders.
Yum Brands’ same-store sales experienced a 9% growth, exceeding estimates of 6.9%. KFC, the company’s largest brand, saw impressive same-store sales growth of 13%, primarily driven by resurging demand in China, where system sales skyrocketed by 32%. Meanwhile, Pizza Hut reported a 4% growth in same-store sales, falling short of predictions. Taco Bell’s same-store sales increased by 4%, albeit lower than anticipated.
Yum Brands attributed some of Taco Bell’s buzz to a trademark dispute over “Taco Tuesday,” which inadvertently generated attention for the chain.
Yum Brands expanded its footprint during the quarter by opening over 1,000 new locations.
