Yum! Brands (NYSE: YUM) slid in pre-market trading at the time of writing on Wednesday even as the fast food company behind brands like KFC, Pizza Hut, and Taco Bell announced Q2 adjusted earnings of $1.41 per share, up by 33% year-over-year and above consensus estimates of $1.24 per share. However, the company generated total revenues of $1.68 billion, up by 3% year-over-year but below consensus forecasts of $1.74 billion.
The company’s worldwide system sales went up by 13% in Q2, excluding currency rate fluctuations led by KFC at 19% with Taco Bell and Pizza Hut at 7% each. Yum added 1,025 gross new units. Digital sales came in at a record $7 billion with digital mix at more than 45%.
David Gibbs, Yum! Brands’ CEO commented, “Our broad-based momentum continued in the second quarter with system sales growth of 13% owing to 9% same-store sales growth and 6% unit growth. KFC, our largest division, led the quarter with an astounding 19% system sales growth. An impressive 1,025 gross new units this quarter and nearly 30% digital sales growth contributed to our robust system sales growth.”
Analysts are cautiously optimistic about YUM stock with a Moderate Buy consensus rating based on 10 Buys and eight Holds.
