Yum Brands beats analyst estimates in second quarter
Yum Brands said that its net income rose 56% to 321mn in its second-quarter, up from $206mn in the same period last year.
The owner of Taco Bell, KFC and Pizza Hut said that, excluding the impact of its investment in online ordering firm Grubhub, the company earned 82 cents per share, beating expectations of analysts surveyed by Thomas Reuters who predicted it would earn 74 cents per share.
Yum Brands noted that its revenue fell 5.5% to $1.37bn, from $1.45bn the previous year, whilst same-store sales — a key metric in the restaurant industry — grew 1% in the quarter.
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Yum Brands CEO, Greg Creed, said: “Second quarter core operating profit was consistent with our expectations and we are seeing good progress against our plans as we start the second half of the year,” said Greg Creed, CEO.
“Importantly, I remain confident our actions to become more focused, more franchised and more efficient are establishing the foundation required for sustainable, long-term growth that will translate to strong returns for all Yum! Brands stakeholders."
During its second quarter, Yum Brands said it opened 243 net new units, resulting in 4% net new unit growth.
The firm also franchised 51 restaurants and repurchased 7.6mn share during its second quarter.
The restaurant group said it will continue with its multi-year transformation strategy and that it remains on track with its full-year 2018 guidance.