Taco Bell parent Yum Brands tops earnings estimates fueled by U.S. sales growth

Yum Brands on Wednesday reported quarterly earnings that crushed analysts' expectations as U.S. consumers returned to its restaurants.

Shares of the company rose less than 1% in premarket trading.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: $1.07 adjusted vs. 87 cents expected
• Revenue: $1.49 billion vs. $1.45 billion expected

The company reported fiscal first-quarter net income rose to $326 million, or $1.07 per share, from $83 million, or 27 cents per share, a year earlier.

Excluding items, Yum earned $1.07 per share, topping the 87 cents per share expected by analysts surveyed by Refinitiv.

Net sales rose 18% to $1.49 billion, beating expectations of $1.45 billion. Global same-store sales rose 9% in the quarter as the company faced comparisons to last year's first quarter, when Covid-19 began hurting demand.

KFC's same-store sales grew by 8%. On a two-year basis, its same-store sales were flat. The fried chicken chain's international sales are returning at a slower pace, hurt by extended lockdowns in some countries. Its U.S. division, however, reported two-year same-store sales growth of 11%.

Pizza Hut's same-store sales climbed 12% in the quarter. On a two-year basis, its same-store sales declined 1%. About 3% of its locations were temporarily closed during the first quarter, dragging down its same-store sales growth. Pizza Hut's U.S. division reported 8% same-store sales growth on a two-year basis, while the international division saw same-store sales shrink by 7% in the same time.

Taco Bell reported same-store sales growth of 9% compared with the year-ago period and 10% on a two-year basis.

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