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Yum! Trademarks (New York Stock Exchange: Yum) reported a 3% decline in same-store sales in the first quarter, well below consensus expectations for a 1.0% rise. The decline in same-store sales from Yum! (YUM) was first since 2020. OR Note that the fast food operator's digital sales mix reached a new record by exceeding 50% for the first time in the company's history.
Global system sales grew 2%, excluding foreign currency translation, with KFC and Taco Bell each up 4% and Pizza Hut up 4%. Same-store sales growth was positive for Taco Bell (+1%), but down for KFC (-2%) and Pizza Hut (-7%). Unit growth increased by 6% during the quarter, as all departments saw the addition of new restaurants during the quarter.
Habit Burger Grill Division system sales declined 2% with same-store sales declining 8%. The chain added 3 new restaurants during the quarter.
Yum! Brands' core operating profit (YUM) rose 6% across the company, led by the KFC division. Adjusted EPS came in at $1.15, beating the consensus mark of $1.10, but improving from the $1.06 mark a year ago.
In terms of development, the KFC division opened 509 new restaurants in 43 countries during this quarter. Taco Bell's division opened 56 new restaurants in 14 countries during the quarter. The Pizza Hut division opened 240 new restaurants in 23 countries during the quarter.
CEO Outlook: “Despite the challenging operating environment, we achieved underlying operating profit growth of 6%, demonstrating the resilience of our business model. As expected, same-store sales were under pressure this quarter, but we are encouraged by the strong growth in the same two years “. Store sales growth and positive momentum at the end of the first quarter were strong with more than 800 new units opened, resulting in 6% unit growth and positioning us to exceed 60,000 restaurants this year.
Yum shares! Brands fell (YUM). 6.15% In premarket trading on Wednesday to $132.57 versus a 52-week range of $115.53 to $143.20.