2023-05-03 07:23:46 ET
Yum Brands ( NYSE: YUM ) reported a 8% increase in same-store sales in Q1 to top the consensus expectation of a 5.8% gain.
Worldwide system sales grew 11%, excluding foreign currency translation, with KFC at 11%, Taco Bell at 12% and Pizza Hut 10%. Same-store sales gains were seen across the KFC (+9%), Taco Bell (+8%), and Pizza Hut (+7%) divisions. Unit growth was up 3% for the quarter, with all divisions seeing new restaurants added during the quarter.
The Habit Burger Grill Division system sales grew 8% with flat same-store sales growth. 11 gross new restaurants in the U.S. and Cambodia were added during the quarter.
Core operating profit rose 11% across the company, led by a 12% increase for the KFC division. Core operating profit was hit by a one percentage point headwind from Russia. EPS came in at $1.05 to fall short of the consensus mark of $1.12.
CEO update: "The demand for our iconic brands is evident as our incredible teams and franchise partners delivered another strong quarter with system sales growth of 13% excluding Russia, driven by 8% same-store sales growth and continued development momentum. We're seeing broad-based accelerating digital sales growth leading to a record quarter for both digital system sales of nearly $7 billion and digital sales mix that exceeded 45%."
Shares of Yum Brands ( YUM ) fell 2.72% in premarket trading on Wednesday to $139.01 vs. the 52-week range of $103.97 to $143.25.
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Yum Brands drops after profit miss overshadows strong same-store sales