Yum! Brands (NYSE:YUM) shares are up, up 3.24%, on Wednesday as the company reported strong first-quarter results, with Taco Bell achieving an impressive 8% same-store sales growth.
This positive performance comes amid broader market pressures, as the Consumer Discretionary sector is currently down 0.71%, contributing to a mixed market day.
• Yum! Brands stock is showing exceptional strength. Why is YUM stock surging?
Quarterly Details
The company reported first-quarter adjusted earnings per share of $1.50, beating the analyst consensus estimate of $1.38. Quarterly sales of $2.059 billion outpaced the Street view of $2.042 billion.
Worldwide system sales grew 6% excluding currency impact, while unit count rose 5% with over 1,000 new openings.
GAAP operating profit increased 17% and core operating profit grew 6%, as digital system sales neared $11 billion with a record 63% mix.
KFC Division opened 648 gross new restaurants across 45 countries, while Taco Bell Division opened 30 gross new restaurants across eight countries. Pizza Hut Division opened 346 gross new restaurants across 27 countries.
Outlook
The company targets long-term average unit growth of 5% and system sales growth of 7%, excluding currency impact.
It also aims to deliver at least 8% core operating profit growth over the long term.
The broader market is experiencing a slight downturn, with major indices such as the S&P 500 and Dow Jones both posting losses. This backdrop …