Yum Brands (NYSE:YUM) on Thursday reported quarterly earnings and revenue that topped analyst predictions as same-store sales grew at all of its major brands, and it opened new restaurants at a record pace.
Earnings per share were $1.16 vs. 96 cents expected
Revenue proved $1.6 billion vs. $1.48 billion expected
During its second quarter, the company reported a net income of $391 million, or $1.29 per share, compared with $206 million, or 67 cents per share, from a year earlier.
Excluding re-franchising gains and other items, Yum earned $1.16 per share, beating the 96 cents per share expected by analysts.
The company’s revenue grew 34% from last year to $1.6 billion, and outpaced expected revenue of $1.48 billion. Worldwide same-store sales grew 23% in the quarter.
Yum said it opened 603 net new locations during the quarter and it plans to pick up the pace of its expansion by reinstating its long-term growth targets. Yum said it plans to grow the number of restaurants it operates by between 4% and 5% over the long term.
One of Yum’s flagship brands, KFC’s same-store sales grew 30% in the quarter, led by growth in the U.S. On a two year basis, same-store sales were up 2%. KFC’s international same-store sales fell 1% over the two-year period as 2% of KFC stores remain temporarily closed as of the end of its second quarter. U.S. same-store sales grew 19% on a two-year basis as pandemic restrictions ease and diners came back.
YUM shares skyrocketed $5.03, or 4.1%, to $127.64.
