Yum! Brands First-Quarter Results Beat Expectations

Yum! Brands, the owner of Pizza Hut, Taco Bell and KFC chains, reported an increase in earnings for the first quarter, beating Wall Street analysts’ forecasts, powered by strong performance at its Taco Bell restaurants which more than offset weaker demand at Pizza Hut.

Income from continuing operations rose to $280 million, or $0.77 per share last quarter from $226 million, or $0.54 per share in the same period a year earlier, the company said in a statement on Wednesday. When adjusted for non-recurring items, the company posted earnings per share (EPS) of $0.65 per share, compared with $0.55 a year earlier. The adjusted EPS exceeded the average analyst estimate of $0.59 in a Capital IQ survey.

Total revenue fell to $1.42 billion from $1.44 billion a year earlier, still topping the $1.38 billion average forecast by analysts in a Capital IQ poll. Same store sales increased 2% across the globe, led by 8% growth at Taco Bell. KFC same-store sales rose 2% while Pizza Hut lagged with a same store sales decline of 3%.

By Caroline Williams