Business

Yum Brands (YUM) Q2 2022 earnings


A woman walks past the Taco Bell Cantina on July 30, 2020 in New York City.

Alexi Rosenfeld | beautiful pictures

Brand Yum on Wednesday reported mixed quarterly results as the Covid shutdown in China affected sales of KFC and Pizza Hut.

However, Taco Bell reported stronger growth in same-store sales. It has a smaller international presence than its sister chains.

The company’s shares rose about 1% in pre-market trading.

Here’s what the company reported versus what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.05 adjusted versus $1.09 expected
  • Revenue: $1.64 billion, in line with expectations

Yum reported second-quarter net income of $224 million, or 77 cents per share, down from $391 million, or $1.29 per share, a year earlier.

Excluding the impact of the withdrawal from Russia, the return of interest and other payments, the restaurant company earned $1.05 per share.

Since March, Yum has suspended any investment and development in Russia due to the Kremlin’s invasion of Ukraine. The company redirected any profits from the business to humanitarian causes as it sought new owners for its Russian restaurants. In June, it completed the sale of its Russian Pizza Hut business to an operator that will rebrand the locations.

The company said Wednesday that it is in the “advanced phase” of selling off its KFC business in Russia. Once that process is complete, Yum will leave Russia altogether. This market accounts for 2% of Yum’s system-wide sales in 2021.

Sales network increased 2% to 1.64 billion USD. The company’s same-store sales rose 1%, dragged down by the Covid lockdowns in China. Excluding China, same-store sales reported a 6% growth.

Read the full earnings report here.



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