Yum Brands (NYSE: YUM) revealed better-than expected quarterly earnings and revenue, which surpassed analyst expectations. However, amid dining room closures, KFC and Pizza Hut’s same-store sales were impacted. Shares fell under 1% during morning trading.
The company reported adjusted earnings of USD1.15 per share, compared to the anticipated USD1.01 a share. Revenue amounted to USD1.74 Billion, higher than analysts predicted USD1.72 Billion. Revenue fell 3% year-over-year during the quarter, however those metrics included a 3% headwind amid a 53rd week of 2019 reporting.
The owner of KFC, Pizza Hut and Taco Bell fast food brands, experienced a variety of outcomes within its many franchises.
Pizza Hut sales decreased 5% year-over year to USD3.41 Billion, meanwhile Taco Bell sales fell 3% to USD3.67 Billion in 2020. On the other hand, KFC jumped 1% to USD7.81 Billion during 2020.
“Yum! enters 2021 a stronger company primed to profitably grow system sales this year and beyond. Despite the challenges of 2020, our full-year results demonstrated our resilience and validated the strategies we put in place during the transformation of Yum!,” said CEO David Gibbs.
Though the ongoing pandemic has greatly impacted the company’s sales, Yum has profited from consumers’ deviation towards digital ordering as well as off-premise sales.
“Our business model really has gotten stronger over the last 12 months,” Gibbs said. “The shift to off-premise suits us well and improves our franchisees’ economics.”
Approximately 98% of Yum restaurants are now open, featuring either full or limited capacity.