Yum! Brands Inc. on Aug. 1 reported overall same-store sales gains across its restaurant chains during the second quarter and adjusted EPS that beat Street expectations for the period.
Adjusted diluted EPS for the quarter ended June 30 came in at 93 cents, an increase of 15% from 82 cents in the same quarter in 2018 and above the S&P Global Market Intelligence mean consensus analyst estimate for normalized EPS of 88 cents. The figure excluded a 1-cent net hit from acquisition-related charges and other expenses, partially offset by tax benefits and net franchising gains, Yum! Brands said.
The KFC, Taco Bell and Pizza Hut operator also reported net income of $289 million, a 10% decline from $321 million in the year-ago period. Analysts expected Yum! Brands to post GAAP net income of $275.3 million, according to Market Intelligence. For the second quarter, Yum! Brands reflected the change in fair value of its investment in Grubhub Inc. by recording pretax investment income of $24 million, or 6 cents of EPS, the company said.
Yum! Brands' revenue for the quarter totaled $1.31 billion, a 4% decrease from $1.37 billion a year earlier.
Same-store sales during the second quarter grew 5% over the previous year, compared to analysts' expectations of 2.90% growth, according to Market Intelligence. Same-store sales at Taco Bell were up 7%, and at KFC, same-store sales were up 6%. Pizza Hut saw same-store sales improve by 2%.
Yum! Brands opened 312 net new units during the quarter, a 7% year-over-year increase. The company also repurchased 1.9 million shares at an average price of $104, or $196 million in total buybacks.
The company maintained a full-year adjusted diluted EPS target of at least $3.75.
Yum! Brands shares were up 3.5% in early trading Aug. 1 to $116.45. The company reported earnings before U.S. markets opened.