2023-08-02 07:32:01 ET
Yum Brands ( NYSE: YUM ) reported a 9% increase in same-store sales in Q1 to top the consensus expectation of a 7.1% gain.
Worldwide system sales grew 13%, excluding foreign currency translation, with KFC 19% higher, Taco Bell showing 7% growth and Pizza Hut up 7%. Same-store sales growth was positive across KFC (+13% vs +9% consensus), Taco Bell (+4% vs. +4.6% consensus), and Pizza Hut (+4% vs. +6.7% consensus) divisions. Unit growth was up 6% for the quarter, with all divisions seeing new restaurants added during the quarter.
The Habit Burger Grill Division's system sales grew 9% with flat same-store sales growth. 5 gross new restaurants in the U.S. were added by the chain during the quarter.
Core operating profit rose 12% across the company, led by a 16% increase for the KFC division. EPS came in at $1.41 to easily beat the consensus mark of $1.24 and improve from the $1.06 from a year ago.
CEO update: "An impressive 1,025 gross new units this quarter and nearly 30% digital sales growth contributed to our robust system sales growth. I remain confident we are well positioned to thrive in any consumer spending environment given the broad consumer appeal of our iconic brands, including our craveable products, compelling value and easy experiences. With our strong year-to-date results and continued momentum, we expect to deliver full year 2023 results well above our long-term growth algorithm for system sales and core operating profit growth."
Shares of Yum Brands ( YUM ) tracked 0.72% higher in premarket trading on Wednesday to $137.25 vs. the 52-week range of $103.97 to $143.25.
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Yum Brands gains after KFC does the heavy lifting in Q2