Pizza Hut Parent Yum! Brands Stock Slides On Q2 Topline Miss; Beats On Bottomline

Yum! Brands Inc YUM reported second-quarter FY23 sales growth of 3% year-on-year to $1.69 billion, missing the analyst consensus of $1.75 billion.

Same-store sales for the quarter grew 9%. Same-store sales at KFC Division increased 13%, Taco Bell climbed 4%, and Pizza Hut grew 4%.

Worldwide system sales, excluding foreign currency translation, grew 13%, with KFC growth at 19%, Taco Bell at 7%, and Pizza Hut at 7%.

YUM's Company sales increased 3% Y/Y to $511 million, and Franchise and property revenues gained 6% to $785 million. Total costs and expenses rose 3% Y/Y to $1.11 billion.

Digital sales increased 30% Y/Y to $7 billion, with the digital mix exceeding 45%.

The company added 1,025 gross units during the second quarter.

The operating margin was 33.9%, and operating income for the quarter climbed 4% to $573 million.

YUM's operating cash flow year-to-date was $673 million versus $522 million last year. It held $659 million in cash and equivalents as of June 30, 2023.

Adjusted EPS of $1.41 beat the analyst consensus of $1.23.

Price Action: YUM shares are trading lower by 2.00% at $133.63 premarket on Wednesday.