Yum! Brands Shares Rise After-Hours On Upbeat Earnings

Loading...
Loading...
Shares of
Yum! Brands, Inc.
YUM
rose 4.5 percent in after-hours trading after the company reported better-than-expected earnings for the first quarter. The Louisville, Kentucky-based company reported a quarterly profit of $362 million, or $0.81 per share, versus a year-ago profit of $399 million, or $0.87 per share, a year earlier. Excluding special items, the company's earnings came in at $0.80 per share. Its total revenue dropped around 4 percent to $2.62 billion. However, analysts were projecting earnings of $0.72 per share on revenue of $2.64 billion. In the latest quarter, sales in China slipped 6 percent, with same-restaurant sales dipped 12 percent. Sales at Taco Bell rose 9 percent in the latest quarter, while sales at KFC gained 8 percent. Sales at Pizza Hut rose 2 percent. India division system sales gained 1 percent in the latest period. Worldwide restaurant margin shrank 1.7 percentage points to 17.5 percent in the quarter, while worldwide operating profit slipped 8 percent. Year-to-date through April 20, 2015, the company repurchased 2.6 million shares at an average price of $76. The average estimate among 42 Estimize users was for earnings of $0.75 per share and revenue of $2.7 billion. Greg Creed, CEO, said "While EPS declined in the first quarter, I'm pleased with the strong performance from our KFC and Taco Bell Divisions, as well as the continued progress we are making in China. I'm confident we will deliver full-year EPS growth of at least 10%, with a strong second half in China and solid brand-building initiatives underway at each of our divisions." The company also reaffirmed its full-year outlook. Yum also said it remains on track to open at least 700 new restaurants in China this year. Yum shares gained 4.51 percent to $84.50 in the after-hours trading session.
Loading...
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsprofit
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...