We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
YUM! Brands' (YUM) Q2 Earnings Beat, Revenues Miss Estimates
Read MoreHide Full Article
YUM! Brands, Inc. (YUM - Free Report) reported mixed second-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. The top and bottom lines increased on a year-over-year basis. During second quarter, the company benefited from robust same-store sales and unit growth.
Following the results, the stock declined 1% in the pre-market trading session on Aug 2.
Earnings and Revenue Discussion
In second-quarter 2023, the company's adjusted earnings per share (EPS) came in at $1.41, surpassing the Zacks Consensus Estimate of $1.23. The metric jumped 33% from the prior year quarter.
Quarterly revenues of $1,687 million missed the consensus estimate of $1,749 million. However, the top line climbed 3% year over year. The upside can be attributed to an increase in revenues across its operating divisions.
Worldwide system sales — excluding foreign currency translation — rose 13% year over year, with Taco Bell, KFC and Pizza Hut rising 7%, 19% and 7% year over year, respectively.
Yum! Brands, Inc. Price, Consensus and EPS Surprise
YUM! Brands primarily announces results under four divisions — KFC, Pizza Hut, Taco Bell and Habit Burger Grill.
For second-quarter 2023, revenues from KFC totaled $682 million, up 1% from the prior-year quarter. Our model predicted the metric to decline 0.2% year over year. Comps in the division climbed 13% year over year against a decline of 1% reported in the previous quarter.
The segment's operating margin expanded 450 basis points (bps) year over year to 47.7%. In the quarter under review, the KFC Division opened 600 gross new restaurants in 60 countries.
At Pizza Hut, revenues amounted to $242 million, up 3% year over year. Our model suggested the metric to rise 2.7% year over year. Comps in the quarter increased 4% year over year against a decline of 3% in the prior-year quarter.
The segment's operating margin declined 190 bps year over year to 37.3%. The Pizza Hut division opened 357 gross new restaurants in 42 countries in the quarter under review.
Taco Bell's revenues were $621 million, up 6% from the year-ago quarter's levels. We expected the metric to gain 10.2% year over year. Comps in the segment rose 4% year over year compared with 8% growth reported in the year-ago quarter. Segmental operating margin expanded 10 bps year over year to 36.8%.
Taco Bell opened 63 gross new restaurants in 9 countries in the quarter under review.
In the second quarter, the Habit Burger Grill division’s revenues amounted to $142 million compared with $138 million reported in the previous quarter. Our model estimated the metric to climb 25% year over year. Comps in the division were flat year over year. This division opened 5 gross new restaurants in the United States.
Other Financial Details
As of Jun 30, 2023, cash and cash equivalents totaled $437 million compared with $367 million at 2022-end. Long-term debt, as of Jun 30, 2023, was $11,194 million compared with $11,453 million as of the end of 2022.
Zacks Rank & Other Key Picks
YUM currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Retail – Restaurants industry include:
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) sports a Zacks Rank #1 (Strong Buy). PLAY has a trailing four-quarter earnings surprise of 6.8%, on average. Shares of PLAY have gained 14% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PLAY’s 2024 sales and EPS indicates rises of 17% and 29%, respectively, from the year-ago period’s levels.
Domino's Pizza, Inc. (DPZ - Free Report) flaunts a Zacks Rank #1. DPZ has a long-term earnings growth rate of 13%. The stock has improved 2.2% in the past year.
The Zacks Consensus Estimate for DPZ’s 2024 sales and EPS suggests growth of 6.2% and 14.4%, respectively, from the year-ago period’s levels.
Chuy's Holdings, Inc. (CHUY - Free Report) carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 23.4%, on average. Shares of CHUY have skyrocketed 72.7% in the past year.
The Zacks Consensus Estimate for CHUY’s 2023 sales and EPS implies gains of 10% and 27.7%, respectively, from the year-ago period’s levels.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
YUM! Brands' (YUM) Q2 Earnings Beat, Revenues Miss Estimates
YUM! Brands, Inc. (YUM - Free Report) reported mixed second-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. The top and bottom lines increased on a year-over-year basis. During second quarter, the company benefited from robust same-store sales and unit growth.
Following the results, the stock declined 1% in the pre-market trading session on Aug 2.
Earnings and Revenue Discussion
In second-quarter 2023, the company's adjusted earnings per share (EPS) came in at $1.41, surpassing the Zacks Consensus Estimate of $1.23. The metric jumped 33% from the prior year quarter.
Quarterly revenues of $1,687 million missed the consensus estimate of $1,749 million. However, the top line climbed 3% year over year. The upside can be attributed to an increase in revenues across its operating divisions.
Worldwide system sales — excluding foreign currency translation — rose 13% year over year, with Taco Bell, KFC and Pizza Hut rising 7%, 19% and 7% year over year, respectively.
Yum! Brands, Inc. Price, Consensus and EPS Surprise
Yum! Brands, Inc. price-consensus-eps-surprise-chart | Yum! Brands, Inc. Quote
Divisional Performance
YUM! Brands primarily announces results under four divisions — KFC, Pizza Hut, Taco Bell and Habit Burger Grill.
For second-quarter 2023, revenues from KFC totaled $682 million, up 1% from the prior-year quarter. Our model predicted the metric to decline 0.2% year over year. Comps in the division climbed 13% year over year against a decline of 1% reported in the previous quarter.
The segment's operating margin expanded 450 basis points (bps) year over year to 47.7%. In the quarter under review, the KFC Division opened 600 gross new restaurants in 60 countries.
At Pizza Hut, revenues amounted to $242 million, up 3% year over year. Our model suggested the metric to rise 2.7% year over year. Comps in the quarter increased 4% year over year against a decline of 3% in the prior-year quarter.
The segment's operating margin declined 190 bps year over year to 37.3%. The Pizza Hut division opened 357 gross new restaurants in 42 countries in the quarter under review.
Taco Bell's revenues were $621 million, up 6% from the year-ago quarter's levels. We expected the metric to gain 10.2% year over year. Comps in the segment rose 4% year over year compared with 8% growth reported in the year-ago quarter. Segmental operating margin expanded 10 bps year over year to 36.8%.
Taco Bell opened 63 gross new restaurants in 9 countries in the quarter under review.
In the second quarter, the Habit Burger Grill division’s revenues amounted to $142 million compared with $138 million reported in the previous quarter. Our model estimated the metric to climb 25% year over year. Comps in the division were flat year over year. This division opened 5 gross new restaurants in the United States.
Other Financial Details
As of Jun 30, 2023, cash and cash equivalents totaled $437 million compared with $367 million at 2022-end. Long-term debt, as of Jun 30, 2023, was $11,194 million compared with $11,453 million as of the end of 2022.
Zacks Rank & Other Key Picks
YUM currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Retail – Restaurants industry include:
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) sports a Zacks Rank #1 (Strong Buy). PLAY has a trailing four-quarter earnings surprise of 6.8%, on average. Shares of PLAY have gained 14% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PLAY’s 2024 sales and EPS indicates rises of 17% and 29%, respectively, from the year-ago period’s levels.
Domino's Pizza, Inc. (DPZ - Free Report) flaunts a Zacks Rank #1. DPZ has a long-term earnings growth rate of 13%. The stock has improved 2.2% in the past year.
The Zacks Consensus Estimate for DPZ’s 2024 sales and EPS suggests growth of 6.2% and 14.4%, respectively, from the year-ago period’s levels.
Chuy's Holdings, Inc. (CHUY - Free Report) carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 23.4%, on average. Shares of CHUY have skyrocketed 72.7% in the past year.
The Zacks Consensus Estimate for CHUY’s 2023 sales and EPS implies gains of 10% and 27.7%, respectively, from the year-ago period’s levels.