Yum! Brands (NYSE:YUM) shares tumbled Wednesday after missing first-quarter profit expectations.
The KFC, Pizza Hut, and Taco Bell owner reported Q1 adjusted EPS of $1.06, $0.07 worse than the analyst estimate of $1.13 and 23% below Q1 2022. In addition, the company's FX headwinds unfavorably impacted YUM's divisional operating profit by $27 million.
However, revenue for the quarter came in at $1.65 billion versus the consensus estimate of $1.62B. The company revealed that worldwide system sales grew 11% in the quarter, with KFC at 11%, Taco Bell at 12%, and Pizza Hut at 10%, while it also reported record digital sales of almost $7B, with digital mix exceeding 45%. Meanwhile, same-store sales grew 9% at KFC, 8% at Taco Bell, and 3% at Pizza Hut.
YUM shares are currently down 3% at $138.50 in premarket trading.
"Our first-quarter results continue to illustrate the power of our global portfolio and the advantages of our business model," said David Gibbs, YUM's CEO. "The demand for our iconic brands is evident as our incredible teams and franchise partners delivered another strong quarter with system sales growth of 13% excluding Russia, driven by 8% same-store sales growth and continued development momentum."