Yum Brands (NYSE: YUM) reported its quarterly earnings Wednesday, surpassing analysts’ estimates as consumer demand increased. The company’s shares surged under 1% during premarket trading.
“First-quarter results reflect encouraging momentum across our business, including solid 2-year same-store sales growth and a meaningful uplift in unit development, underpinned by the focus and collaboration of our franchise partners and restaurant teams around the world. During the quarter we took important steps to further boost our digital and marketing capabilities through the acquisitions of two technology-focused companies that will enhance our ability to grow our sales overnight and our brands over time,” said CEO David Gibbs.
The parent company to KFC, Pizza Hut, Taco Bell and The Habit reported earnings of UD1.07 per share, compared to the expected USD0.87 a share. Revenue amounted to USD1.49 Billion, higher than analysts anticipated USD1.45 Billion. Furthermore, it detailed that its first-quarter net income increased to USD326 Million from the previous year’s USD83 Million.
Yum Brands revealed that it experienced outstanding digital sales, reaching over USD5 Billion thanks to off-premise growth. As a means of accelerating online sales growth, the company purchased two tech start-ups, Tictuk and Kvantum, throughout the quarter. Tictuk lets customers place orders online while using other social media and messaging apps and Kvantum utilizes artificial intelligence in regards to consumer insights and marketing performance data.
During the quarter KFC same-store sales rose 8%, Pizza Hut same-store sales surged 12%, Taco Bell same-store sales climbed 9% and The Habit Burger Grill had a same-store sales increase of 13%.