Taco Bell-parent Yum! Brands misses earning estimates, beats revenue
reported mixed fourth-quarter results on Wednesday, beating comparable sales estimates but misses earnings
• Net sales increase by 8% to $1.89 billion, above estimates of $1.88 billion
• Comparable sales increase by 5% in the fourth quarter for the firm
• Yum reports Q4 net income of $330 million, or $1.11 per share
Pizza Hut-parent Yum! Brands, Inc (NYSE: YUM) reported mixed fourth-quarter results on Wednesday, beating comparable sales estimates but misses earnings.
Here's how the firm reported Q4 compared to Wall Street expectations:
Earnings per share: $1.02 adjusted vs. $1.09 projected
Revenue: $1.89 billion, compared to $1.88 billion predicted
Comparable sales increased by 5% in the fourth quarter for the firm, which also controls the Pizza Hut and Taco Bell franchises. Refinitiv surveyed analysts predicted a 4.5%.
Net sales increased by 8% to $1.89 billion, above estimates of $1.88 billion.
Yum reported a fourth-quarter net income of $330 million, or $1.11 per share, a decrease from $332 million, or $1.08 per share, the previous year.
David Gibbs, CEO, said in a statement, “We opened an astounding 4,180 gross units in 2021, marking the strongest growth year in Yum!'s history and setting a restaurant industry record for unit development. We also reached new heights in digital sales that topped $22 billion.
During the fourth quarter, we added 1,678 gross units and repurchased 5.6 million shares for a total of $720 million at an average price of $128 per share.
KFC Division
During the quarter, the KFC Division opened 904 net new outlets while operating margin remained steady for the quarter as higher general and administrative expenditures and corporate restaurant expenses were offset by increased system sales.
Same-store sales in the segment increased 3% year on year for the quarter and 2% for the year while KFC U.S. same-store sales increased 12 % for the quarter and 13 % for the year over the previous year.
Taco Bell Division
During the quarter, the Taco Bell Division launched 195 net new restaurants while restaurant margin %ages for the quarter were 22.6 % and 23.9 % for the year.
Same-store sales increased by 9% for the quarter and 10% for the year over the previous year and Spain is the first Taco Bell International market to have more than 100 outlets.
Pizza Hut Division
During the quarter, the Pizza Hut Division launched 571 net new restaurants while operating margin improved by less than 1% point for the quarter, principally due to increased system sales.
Same-store sales in the segment increased by 2% year on year for the quarter and 1% year on year while same-store sales in the US increased 10% for the quarter and 9% for the year.
Picture Credits: Yum! Brand Inc
