Yum (YUM, $117.73) stock rises on Q1 earnings...

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Apr 28, 2021

Yum (YUM, $117.73) stock rises on Q1 earnings beat

Yum Brands shares climbed Wednesday, after it reported first quarter results. The fast-food company, that owns chains like Taco Bell and Pizza Hut, posted earnings of $326 million, or $1.07 a share, compared with $83 million, or 27 cents a share, in the year-earlier quarter. Analysts polled by FactSet expected 86 cents a share.

Revenue rose to $1.49 billion from $1.26 billion. It also exceeded analysts’ expectation of $1.45 billion.

Global same-store sales increased 9%. Same-store sales in the U.S. increased 11%, 8% and 10% for KFC, Pizza Hut and Taco Bell respectively. These figures were calculated on a 2-year basis, according to the company.

"First-quarter results reflect encouraging momentum across our business, including solid two-year same-store sales growth and a meaningful uplift in unit development," Chief Executive David Gibbs said in a statement.

Gibbs also added that the company took “important steps” to bolster digital and marketing capabilities through the acquisitions of two technology-focused companies.

Last month Yum Brands acquired the Tel Aviv online-ordering firm Tictuk Technologies.

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