NEW YORK - Yum! Brands, Inc. (NYSE:YUM) reported mixed second-quarter results on Wednesday, with earnings beating expectations but revenue falling short. The fast food restaurant operator's shares slipped 0.71% following the announcement.
The company reported adjusted earnings per share of $1.35, surpassing analyst estimates of $1.33. However, revenue came in at $1.76 billion, below the consensus forecast of $1.81 billion.
Yum! Brands, which operates KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill, saw worldwide system sales grow 3% YoY, excluding foreign currency translation. This growth was driven by a 5% increase in unit count, although same-store sales declined 1%.
Taco Bell emerged as a bright spot, with system sales growing 7% and same-store sales increasing 5%. KFC's system sales rose 2%, while Pizza Hut's remained flat.
"I'm incredibly pleased with how well our teams have managed through a challenging operating environment to deliver a 10% increase in Core Operating Profit," said David Gibbs, CEO of Yum! Brands. He highlighted the performance of Taco Bell, crediting "unmatched, crave-worthy innovation" and the successful launch of the Cantina Chicken menu platform.
The company opened 894 gross new units during the quarter, expanding its global footprint. Digital sales remained robust at nearly $8 billion, accounting for over 50% of total sales.
Despite the revenue miss, Yum! Brands maintained its outlook, expecting to deliver at least 8% core operating profit growth for the full year.
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