Vehicles wait in line in the passage of a Yum! Brands Inc. Kentucky Fried Chicken (KFC) and Taco Bell Restaurant in Lockport, Illinois, USA
Daniel Acker | Bloomberg | Getty Images
Yum Brands reported Thursday that quarterly sales were up 8%, driven by Taco Bell's return to positive sales growth in the same store.
The company's shares rose 1.5% in premarket trading.
The company reported, relative to Wall Street expectations based on an analyst survey by Refinitiv:
Earnings per share: $ 1.01, adjusted versus 80 cents expected. Revenue: $ 1.45 billion versus $ 1.42 billion expected
Yum reported net income of $ 283 million, or 92 cents per share, for the third quarter, compared to $ 255 million, or 81 cents per share, a year earlier.
Yum's investment in Grubhub increased earnings per share for the quarter by 2 cents due to changes in fair value. The KFC owner, who had denied the terms of the deal with Grubhub earlier this summer, also said it sold its stake for $ 206 million.
Excluding the cost of a voluntary early retirement program, restructuring charges, and other items, the company earned $ 1.01 per share, beating the analysts surveyed by Refinitiv at 80 cents per share.
Net sales rose 8% to $ 1.45 billion, beating expectations of $ 1.42 billion. Sales in the same store in Yum were down 2%, but the company's digital sales hit a new record for a single quarter, reaching $ 4 billion.
Taco Bell saw sales grow 3% in the same store. In the most recent quarter, the chain saw an 8% decline in sales in the same store, negatively impacted by lower early morning and late evening customer demand.
Yum's other brands saw sales declines in the same store for the quarter. KFC and Pizza Hut's results were both hurt by declining demand in their international markets. KFC's global sales in the same store decreased 4% despite sales growth of 9% in the same store in the US. Pizza Hut saw sales decrease 3% worldwide in the same store. The pizza chain's quarterly sales in the same store rose 6% in the US.
At Habit Burger Grill, which Yum bought earlier this year, sales in the same store declined 5% in the quarter.
Read the full results report here.