Pedestrians walk in front of Taco Bell, an American fast food restaurant chain in Spain.
Xavi Lopez | Lightrocket | Getty Images
yam brand Fueled by strong same-store sales growth at Taco Bell, the company reported quarterly earnings and earnings that beat analyst expectations Wednesday.
Overall, the restaurant giant saw strong U.S. demand for food, but weak sales in China again weighed on the performance of KFC and Pizza Hut. After the Chinese government eased its zero-Covid policy, a new wave of outbreaks hit the country, hurting the recovery of Yum and other restaurant companies. Starbucks.
Here’s Yam’s report comparing it to what Wall Street expected, based on analyst research by Refinitiv:
- Earnings Per Share: Adjusted $1.31 vs $1.26 Expected
- Revenue: $2.02 billion vs. $1.92 billion forecast
Yum reported fourth-quarter net income of $371 million, or $1.29 per share, up from $330 million, or $1.11 per share, in the year-ago quarter.
Excluding costs and other items related to the decision to exit Russia, the company’s earnings were 1.31 cents per share.
net sales $2.02 billion, up 7%. The company’s global same-store sales grew 6% in the fourth quarter, fueled by diners’ strong appetite for Taco Bell.
Typically the strongest performer in Yum’s portfolio, Taco Bell reported 11% same-store sales growth, surpassing StreetAccount’s estimated 6.7%. Management said Taco Bell sold his 45 million Mexican pizzas in 2023.
Although it has expanded internationally in recent years, most of the Mexican-inspired chain’s locations are in the United States.Yum CEO David Gibbs said Taco Bell’s international footprint could grow to around 1,000 this quarter. said to have exceeded the limit. The company has built his 40% of international restaurants in the last two years.
KFC underperformed Wall Street expectations as poor performance in China weighed on earnings. The fried chicken chain reported same-store sales growth of 5%, just below his estimated 5.4%. Excluding China, KFC’s largest market, KFC same-store sales increased 9%.
Weak sales in China also impacted Pizza Hut’s fourth quarter results. Pizza His chain’s global same-store sales increased his 1%, while international same-store sales decreased his 1%. Pizza Hut’s U.S. same-store sales increased his 4%. This shows that consumers are recovering from last year’s pizza fatigue after over-ordering pies during the coronavirus lockdown. Executives said advertising that emphasized new value propositions helped lure low-income customers back to the pizza chain.
Yum’s latest addition, The Habit Burger Grill, saw sales drop 1% in the quarter for locations that have been in business for at least a year. Sales increased by 12% for a system that tracks transactions across all restaurants in the chain, not just locations that have been open for months.
The company’s shares fell less than 1% in pre-market trading.
Read the full Yum brand earnings report here.
https://www.cnbc.com/2023/02/08/yum-brands-yum-earnings-q4-2022.html Yum Brands (YUM) Revenue Q4 2022