Yum Brands (YUM) popped Thursday after the fast-food operator posted better-than-expected second-quarter results that were driven by comparable-sales growth.
The Louisville, Ky.-based owner of the KFC, Pizza Hut and Taco Bell brands said it earned $0.93 per adjusted share in the quarter ended June 30, up from $0.82 in the prior-year period and ahead of Capital IQ’s consensus for $0.88.
Revenue fell to $1.31 billion from $1.37 billion last year, weighed down by a drop in sales at company-owned stores. The print for the just-ended quarter was ahead of the Street’s view for $1.28 billion.
Comparable-sales rose 5% in the quarter, ahead of the Street’s view of 2.9%. Excluding foreign-exchange impacts, sales rose 10%.
Yum shares were up nearly 4.8% in early trading.
“Second-quarter results maintained early year momentum and helped us to exceed our already high expectations for a strong first half of 2019,” Chief Executive Greg Creed said.
KFC sales dropped 10% to $584 million while comparable-store sales rose 6%. Pizza Hut reported sales rose 6% to $246 million as comparable-store sales advanced 2%. Taco Bell sales slid 1% to $480 million on 7% comparable-store sales growth.
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