Yum Brands (YUM) Q1 2022 earnings
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The Yum! drive-through lane is packed with vehicles. Brands Inc. Kentucky Fried Chicken and Taco Bell restaurants in Lockport (Illinois), U.S.
Getty Images| Bloomberg | Getty Images
Yum Brands on Wednesday reported quarterly earnings and revenue that missed analysts’ expectations as lockdowns in China weighed on sales.
Based on an analysis of Wall Street analysts, here’s the report from the company.
- Earnings per share: $1.05 adjusted vs. $1.07 expected
- Revenue: $1.55Billion, vs. $1.59Billion expected
Yum posted a first quarter net income of $399million, or $1.36 per shares, an increase from the $326 million or $1.07 per shared a year ago.
The company’s earnings were $1.05 per share after excluding refranchising profits, Russian operation profits, and other items. This is below the $1.07 expected by Refinitiv analysts.
Net sales rose 4% to $1.55 billion, falling short of expectations of $1.59 billion. The quarter saw a 3% increase in global same-store sales.
KFC recorded a growth in same store sales of 3% over the course of the reporting period. Yum, however, stated that sales at the KFC fried chicken chain increased by 10%, even though they did not exclude China. China is KFC’s biggest market in terms of system-wide sales. StreetAccount estimates that Wall Street expected 4.4% growth in same-store sales.
China was also affected by Pizza Hut’s performance. China is now the second largest market for pizza chains. Pizza Hut recorded flat quarterly same-store sales growth. Same-store sales in international markets including China increased 5%.
Pizza Hut USA sales also suffered. In its native market, the company reported that same-store sales fell by 6%.
Yum’s only restaurant chain, Taco Bell reported a 5% increase in same-store sales compared with 2.7%.
Read the full earnings report here.
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