Here’s what the company reported compared to what Wall Street expected, based on an analyst survey by Refinitiv:
- Earnings per share: $ 1.01, adjusted, vs. 80 cents expected
- Revenue: $ 1.45 billion against $ 1.42 billion expected
Yum reported third-quarter net income of $ 283 million, or 92 cents per share, from $ 255 million, or 81 cents per share, a year earlier.
Yum’s investment in Grubhub increased earnings per share by 2 cents this quarter due to changes in its fair value. The owner of KFC, who challenged the terms of the deal with Grubhub this summer, also said he sold his stake for $ 206 million.
Excluding expenses related to items such as a voluntary early retirement program and restructuring, the company earned $ 1.01 per share, exceeding the 80 cents per share expected by analysts polled by Refinitiv.
Net sales of $ 1.45 billion were up 8% from a year earlier, beating expectations of $ 1.42 billion. Yum’s same-store sales fell 2%, but the company’s digital sales set a quarter-record high, reaching $ 4 billion.
Taco Bell reported comparable store sales growth of 3%. In the last quarter, the chain saw its same-store sales fall 8%, penalized by lower customer demand in the early morning and late at night.
Yum’s other brands reported lower comparable store sales in the quarter. KFC and Pizza Hut’s results were held back by lagging demand in their international markets. KFC’s worldwide same-store sales fell 4%, despite US same-store sales growth of 9%. Pizza Hut reported a decline in worldwide same store sales of 3%. The pizza chain’s quarterly same-store sales rose 6% in the United States.
Habit Burger Grill, which Yum bought earlier this year, saw same-store sales drop 3% in the quarter.
Yum permanently closed 267 restaurants during the quarter. Compared to the same period a year ago, its restaurant footprint increased by 2%.
Read the full revenue report here.