Yum Brands (NYSE: YUM), parent company to KFC, Pizza Hut, and Taco Bell, topped quarterly earnings and revenue analysts’ expectations, amid increasing demand for KFC’s fried chicken. However, Pizza Hut chains experienced a slowdown in sales.
Following Covid-19 vaccinations, customers throughout the United States, Canada, and Europe have begun to return to restaurants. Similarly, other chains such as Chipotle and McDonald’s have also reported strong earnings in the third quarter.
“We did see a return to dine-in, yet we saw digital sales go up … that is still something that is going to continue to grow for us,” Yum Brands Chief Executive Officer David Gibbs said on a call with analysts.
The American fast-food corporation reported earnings of USD1.22 per share, compared to the expected USD1.08 a share. Revenue amounted to USD1.61 Billion, higher than analysts anticipated USD1.59 Billion.
KFC’s same-store sales rose 6%, an improvement from the previous year’s 4% gain. Pizza Hut experienced a 4% same-store sales increase as the economy bounced back. Meanwhile, Taco Bell’s same-store sales climbed 5% within the quarter.
“It does have its own unique challenges since it skews a little bit more towards individual meals versus family occasions,” Yum CEO David Gibbs told analysts. “You’re seeing the brands like Pizza Hut and KFC that skew towards family occasions performing even better, but Taco Bell performance is strong.”