Pizza Hut Parent Misses Q1 Earnings Estimates; Digital Mix Exceeds 40%

Yum! Brands Inc YUM reported first-quarter FY22 sales growth of 4% year-on-year to $1.55 billion, missing the consensus of $1.59 billion.
Same-store sales for the quarter grew 3%. Same-store sales at KFC Division increased 3%, Taco Bell climbed 5%, and Pizza Hut was flat.
KFC Division ex-China same-store sales grew 10%, and Pizza Hut International ex-China same-store sales grew 10%.
Worldwide system sales excluding foreign currency translation grew 8%, with KFC growth at 9%, Taco Bell at 8%, and Pizza Hut at 3%.
YUM's Company sales fell 1% Y/Y to $470 million, and Franchise and property revenues increased 9% to $714 million. Total costs and expenses declined 10% Y/Y to $1.04 billion.
Digital sales increased 15% Y/Y to $6 billion, with the digital mix exceeding 40%.
The company added 997 gross units during the first quarter, a 6% Y/Y growth.
The operating margin was 32.9%, and operating income for the quarter fell 6% to $509 million.
YUM's net cash from operating activities in Q1 declined 21.9% Y/Y to $253 million. It held $365 million in cash and equivalents as of March 31, 2022.
Adjusted EPS of $1.05 missed the analyst consensus of $1.07.
Price Action: YUM shares closed lower by 0.60% at $115.07 on Tuesday.
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