Yum Brands ( NYSE: YUM ) reported global sales rose 8% in Q4, with sales up KFC at 6%, Taco Bell seeing a 14% rise, Habit Grill showing a 12% increase, and Pizza Hut a 4% gain. The Louisville-based company's +8% comp was well ahead of the consensus estimate of +4.4%.
Same store sales rose 5% for KFC, 11% for Taco Bell, and 1% for Pizza Hut. Overall unit growth was +4% with all three chains seeing an increase. The fast-food operator added a total of 1,830 units during the quarter.
Core operating profit increased 22% during the quarter, led by a 30% jump for the Pizza Hut division. Foreign currency translation unfavorably impacted divisional operating profit by $42M during the quarter.
CFO update: "Our fiscal 2022 results delivered on our raised long-term growth algorithm with record-setting net new unit growth and 4% same-store sales growth. Despite inflationary pressures and a 2-point negative impact from Russia, we delivered 6% Core Operating Profit growth – a testament to the strength of our enterprise. We remain focused on executing the strategies underlying our Recipe for Good Growth to drive our business forward. I'm also pleased to announce our Board of Directors approved an increased quarterly dividend of $0.605."
Shares of Yum Brands ( YUM ) rose 1.15% in premarket trading to $130.50 following the earnings topper.
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Yum Brands gains after smashing same-store sales expectations