A pedestrian walks past the American chain of fast-food restaurants Taco Bell in Spain.
Xavi Lopez | Lightrocket | Getty Images
Yum Brands on Wednesday reported quarterly earnings and revenue that topped analysts’ expectations, fueled by strong same-store sales growth at Taco Bell.
Overall, the restaurant giant saw solid U.S. demand as high-income consumers traded down to fast food and low-income diners bought its chains’ value meals. However, weak sales in China once again weighed on KFC’s and Pizza Hut’s results, after the Chinese government relaxed its zero Covid policy and a wave of new outbreaks hit the country. The resurgence hurt recovery efforts for Yum and other restaurant companies, like Starbucks.
Here’s what Yum reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
Earnings per share: $1.31 adjusted vs. $1.26 expectedRevenue: $2.02 billion vs. $1.92 billion expected
Yum reported fourth-quarter net income of $371 million, or…
2023-02-08 09:45:52 Yum Brands (YUM) earnings Q4 2022
Post from www.cnbc.com
Yum Brands Inc. (NYSE: YUM) recently reported fourth quarter (Q4) 2022 earnings with total revenue expected to exceed the analyst estimates. The company reported that its revenue for the fourth quarter ended December 28th was $1.63 billion, up 10% year-over-year. Net income attributable to Yum Brands was $374 million, compared to $483 million in the same period of the prior year. Earnings per share were $1.84 per share, in line with analyst consensus of $1.83.
The strong earnings were driven primarily by growth in the company’s core business. Yum’s international division posted a 10% increase in same-store sales as its restaurants in the U.S. and Canada continued to experience strong demand. Yum’s international division experienced the greatest growth, rising 19% since the fourth quarter of 2021.
Yum’s CEO, Greg Creed, credited the company’s success to its continued focus on innovation, brand-building and franchising. Creed stated, “Our new store openings in the U.S. and Canada remain strong, and our international division delivered forward progress, led by KFC, Pizza Hut and Taco Bell. We also continue to focus on growth and innovation in part by modernizing our restaurants and delivering new products such as Yum’s Chef-Crafted Bowls, which provide customers with the convenience and flavor they love.”
Analysts are very optimistic about Yum’s long-term prospects, noting that the company is well-positioned to continue its current performance due to its wide brand recognition, market-leading capability and solid execution. Yum also has a strong online presence and continues to expand into new markets such as food delivery and digital enablement.
Yum Brands looks set to report solid earnings for Q4 2022 and continue to be a strong performer in the market. The company’s continued focus on innovation, brand building and franchising are expected to propel the business forward in the near future. Investors should keep an eye on the stock as it has been a solid performer over the past year and looks set to remain one in the quarters ahead.