A girl walks previous a Taco Bell Cantina on July 30, 2020 in New York Metropolis.
Alexi Rosenfeld | Getty Photos
Yum Brands on Wednesday reported combined quarterly outcomes as Covid lockdowns in China weighed on KFC’s and Pizza Hut’s gross sales.
Taco Bell, nevertheless, reported stronger same-store gross sales progress. It has a smaller worldwide presence than its sister chains.
Shares of the corporate had been up about 1% in premarket buying and selling.
This is what the corporate reported in contrast with what Wall Avenue was anticipating, based mostly on a survey of analysts by Refinitiv:
- Earnings per share: $1.05 adjusted vs. $1.09 anticipated
- Income: $1.64 billion, in step with expectations
Yum reported second-quarter web revenue of $224 million, or 77 cents per share, down from $391 million, or $1.29 per share, a yr earlier.
Excluding the influence of pulling out of Russia, refranchising beneficial properties and different objects, the restaurant firm earned $1.05 per share.
Since March, Yum has suspended any funding and growth in Russia as a result of Kremlin’s invasion of Ukraine. The corporate has redirected any income from the enterprise to humanitarian causes because it searches for brand new homeowners for its Russian eating places. In June, it accomplished the sale of its Russian Pizza Hut enterprise to an operator that may rebrand the places.
The corporate mentioned Wednesday it is within the “superior levels” of promoting off its KFC enterprise in Russia. After that course of is accomplished, Yum could have exited Russia solely. The market accounted for two% of Yum’s system-wide gross sales in 2021.
Web gross sales rose 2% to $1.64 billion. The corporate’s same-store gross sales grew 1%, dragged down by Covid lockdowns in China. Excluding China, it reported same-store gross sales progress of 6%.
Learn the total earnings report right here.