Yum Brands (YUM) Q1 2020 earnings
People dress in facial mask walking past a KFC cafe, which has resumed its out of doors eating area. For the COVID-19 epidemic situation is beneath manage in China, most of browsing malls and merchants are resuming business enterprise.
Zhang Peng | Getty Photos
Yum Brands on Wednesday noted that its very first-quarter very same-retail store product sales fell 7% as the coronavirus pandemic weighed on Pizza Hut and KFC’s income.
Shares of the corporation rose a lot less than 1% in premarket buying and selling.
Here is what the enterprise described:
- Earnings per share: 64 cents, modified
- Earnings: $1.26 billion
Yum noted fiscal first-quarter net profits of $83 million, or 27 cents per share, down from $262 million, or 83 cents for every share, a 12 months previously. The firm’s minority stake in Grubhub trimmed earnings for each share by 6 cents.
Excluding refranchising gains, fees of acquiring Behavior Burger Grill and other objects, Yum acquired 64 cents per share.
Net income rose 1% to $1.26 billion.
Wall Avenue anticipated earnings for every share of 65 cents on revenue of $1.20 billion, primarily based on a study of analysts by Refinitiv.
KFC’s identical-shop gross sales shrank 8% in the quarter. Much more than a quarter of the fried hen chain’s systemwide revenue arrive from China, the place it was pressured to near quite a few locations quickly to gradual the spread of the coronavirus.
Pizza Hut, the laggard of Yum’s portfolio, described even steeper very same-shop revenue declines of 11% as gross sales in the U.S. and China fell.
Yum China, which was spun off in 2016, explained on Tuesday that the drop in exact same-store sales is slowing as individuals in China modify to a new regular. The KFC and Pizza Hut licensee reported that about 99% of its merchants in China are both partially or entirely open up.
Taco Bell was the only brand name to report favourable very same-keep revenue progress in the course of the quarter. In mid-March, the chain commenced offering only push-thru services, with takeout authorized if the site did not have a travel-via lane. Some places to eat began opening later, proficiently removing breakfast from the menu.