Zinger Key Points
- Yum! Brands Q2 EPS of $1.35 beats estimates; digital sales hit nearly $8B, making up over 50% of total sales.
- Despite a 1% same-store sales decline, Yum! Brands sees 3% global sales growth and opens 894 new units.
- Get New Picks of the Market's Top Stocks
Yum! Brands, Inc. YUM shares are trading higher on Tuesday.
The company reported second-quarter adjusted earnings per share of $1.35, beating the street view of $1.33.
Total revenues rose 4% to $1.763 billion, missing the consensus of $1.805 billion. GAAP operating profit rose by 6%, while core operating profit grew 10%.
Same-store sales declined 1%. Worldwide system sales grew 3%, excluding foreign currency translation, with KFC at 2%, Taco Bell at 7% and Pizza Hut flat. Unit count increased by 5%, with 894 new units added. Digital sales reached nearly $8 billion, with digital mix over 50%.
“Our twin growth engines of Taco Bell U.S. and KFC International combined delivered 5% system sales growth led by 8% unit growth,” David Gibbs, CEO, said.
Also Read: Zelle Controversy Heats Up: JPMorgan Considers Legal Action
The KFC Division opened 598 gross new restaurants across 57 countries. The Taco Bell Division opened 56 gross new restaurants across 11 countries.
Pizza Hut Division opened 236 gross new restaurants across 30 countries. The Habit Burger Grill Division opened 4 gross new restaurants this quarter.
The company said that foreign currency translation negatively impacted divisional operating profit by $12 million.
“Based on our first half results, we continue to expect to deliver at least 8% Core Operating Profit growth this year. Meanwhile, as we progress into the next phase of our technology and digital journey, we are laying the groundwork for another promising year in 2025 as evidenced by the expansion of drive-thru Voice AI technology at Taco Bell,” Gibbs added.
Price Action: YUM shares are trading higher by 2.75% to $136.99 at last check Tuesday.
Image Via Shutterstock
Read Next:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
