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YUM! Brands (YUM) Q2 Earnings & Revenues Miss Estimates
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YUM! Brands, Inc. (YUM - Free Report) reported second-quarter 2022 results, with earnings and revenues missing the Zacks Consensus Estimate. The top line rose year over year, while the bottom line decline.
During the second quarter, the company reported resilient global business backed by strength in Taco Bell. Also, it reported growth in its digital business fueled by the solid adoption of its global platforms. During the quarter, the company reported digital sales of more than $6 billion.
Earnings and Revenue Discussion
During second-quarter 2022, the company's adjusted earnings of $1.05 missed the Zacks Consensus Estimate of $1.08. In the prior-year quarter, the company reported adjusted earnings of $1.16.
Yum Brands, Inc. Price, Consensus and EPS Surprise
Quarterly revenues of $1,636 million lagged the consensus mark of $1,656 million. However, the top line increased 2.1% year over year. The upside can be attributed to an increase in franchise and property revenues.
Worldwide system sales — excluding foreign currency translation — increased 3% year over year, with Taco Bell (rising 10% year over year), KFC (1%) and Pizza Hut (flat).
Divisional Performance
YUM! Brands primarily announces results under four divisions — KFC, Pizza Hut, Taco Bell and Habit Burger Grill.
For second-quarter 2022, revenues from KFC totaled $677 million, down 0.7% year over year. Comps in the division declined 1% year over year against growth of 30% reported in the prior-year quarter.
The segment's operating margin declined 330 basis points (bps) year over year to 43.2%. In the quarter under review, KFC Division opened 405 gross new restaurants.
At Pizza Hut, revenues amounted to $235 million, down 5.6% year over year. Comps in the quarter declined 3% year over year against a growth of 10% reported in the prior-year quarter.
The segment's operating margin contracted 210 bps year over year to 39.2%. Pizza Hut Division opened 287 gross new restaurants in the first quarter.
Taco Bell's revenues were $586 million, up 10.2% from the year-ago quarter's levels. Comps in the segment increased 8% year over year compared with 21% growth reported in the year-ago quarter. Its operating margin declined 50 bps year over year to 36.7%.
Taco Bell opened 82 gross new restaurants in the quarter under review.
The Habit company sales amounted to $138 million during the second quarter. Comps in the division declined 4% year over year. In the quarter under review, the company opened seven gross new restaurants in the United States.
Other Financial Details
As of Jun 30, 2022, cash and cash equivalents totaled $412 million compared with $365 million on Mar 31, 2022. Long-term debt as of Jun 30, 2022, stood at $11,540 million compared with $11,332 million as of Mar 31, 2022.
Dollar Tree sports a Zacks Rank #1. DLTR has a trailing four-quarter earnings surprise of 13.1%, on average. The stock has gained 64.9% in the past year.
The Zacks Consensus Estimate for Dollar Tree’s 2022 sales and earnings per share (EPS) suggests growth of 6.7% and 40.5%, respectively, from the corresponding year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth of 34.4%. Shares of the company have increased 21.9% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 25.7% and 120.8%, respectively, from the year-ago period’s levels.
Potbelly carries a Zacks Rank #2. PBPB has a trailing four-quarter earnings surprise of 26.2%, on average. Shares of PBPB have declined 24.8in the past year.
The Zacks Consensus Estimate for Potbelly’s 2022 sales and EPS suggests growth of 14.1% and 90.4%, respectively, from the corresponding year-ago period’s levels.
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YUM! Brands (YUM) Q2 Earnings & Revenues Miss Estimates
YUM! Brands, Inc. (YUM - Free Report) reported second-quarter 2022 results, with earnings and revenues missing the Zacks Consensus Estimate. The top line rose year over year, while the bottom line decline.
During the second quarter, the company reported resilient global business backed by strength in Taco Bell. Also, it reported growth in its digital business fueled by the solid adoption of its global platforms. During the quarter, the company reported digital sales of more than $6 billion.
Earnings and Revenue Discussion
During second-quarter 2022, the company's adjusted earnings of $1.05 missed the Zacks Consensus Estimate of $1.08. In the prior-year quarter, the company reported adjusted earnings of $1.16.
Yum Brands, Inc. Price, Consensus and EPS Surprise
Yum Brands, Inc. price-consensus-eps-surprise-chart | Yum Brands, Inc. Quote
Quarterly revenues of $1,636 million lagged the consensus mark of $1,656 million. However, the top line increased 2.1% year over year. The upside can be attributed to an increase in franchise and property revenues.
Worldwide system sales — excluding foreign currency translation — increased 3% year over year, with Taco Bell (rising 10% year over year), KFC (1%) and Pizza Hut (flat).
Divisional Performance
YUM! Brands primarily announces results under four divisions — KFC, Pizza Hut, Taco Bell and Habit Burger Grill.
For second-quarter 2022, revenues from KFC totaled $677 million, down 0.7% year over year. Comps in the division declined 1% year over year against growth of 30% reported in the prior-year quarter.
The segment's operating margin declined 330 basis points (bps) year over year to 43.2%. In the quarter under review, KFC Division opened 405 gross new restaurants.
At Pizza Hut, revenues amounted to $235 million, down 5.6% year over year. Comps in the quarter declined 3% year over year against a growth of 10% reported in the prior-year quarter.
The segment's operating margin contracted 210 bps year over year to 39.2%. Pizza Hut Division opened 287 gross new restaurants in the first quarter.
Taco Bell's revenues were $586 million, up 10.2% from the year-ago quarter's levels. Comps in the segment increased 8% year over year compared with 21% growth reported in the year-ago quarter. Its operating margin declined 50 bps year over year to 36.7%.
Taco Bell opened 82 gross new restaurants in the quarter under review.
The Habit company sales amounted to $138 million during the second quarter. Comps in the division declined 4% year over year. In the quarter under review, the company opened seven gross new restaurants in the United States.
Other Financial Details
As of Jun 30, 2022, cash and cash equivalents totaled $412 million compared with $365 million on Mar 31, 2022. Long-term debt as of Jun 30, 2022, stood at $11,540 million compared with $11,332 million as of Mar 31, 2022.
Zacks Rank & Key Picks
Yum! Brands carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Retail-Wholesale sector are Dollar Tree Inc. (DLTR - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Potbelly Corporation (PBPB - Free Report) .
Dollar Tree sports a Zacks Rank #1. DLTR has a trailing four-quarter earnings surprise of 13.1%, on average. The stock has gained 64.9% in the past year.
The Zacks Consensus Estimate for Dollar Tree’s 2022 sales and earnings per share (EPS) suggests growth of 6.7% and 40.5%, respectively, from the corresponding year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth of 34.4%. Shares of the company have increased 21.9% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 25.7% and 120.8%, respectively, from the year-ago period’s levels.
Potbelly carries a Zacks Rank #2. PBPB has a trailing four-quarter earnings surprise of 26.2%, on average. Shares of PBPB have declined 24.8in the past year.
The Zacks Consensus Estimate for Potbelly’s 2022 sales and EPS suggests growth of 14.1% and 90.4%, respectively, from the corresponding year-ago period’s levels.