Yum Brands Q1 Revenue Up 15% to $2.06B as Taco Bell Sales Jump 8%
Yum Brands’ Q1 adjusted EPS rose 15% to $1.50, with revenue up 15% to $2.06 billion and GAAP net income of $432 million alongside a $44 million litigation settlement. Taco Bell drove growth with 8% same-store sales, while KFC added 648 restaurants, and Pizza Hut flatlined, prompting a strategic review.
1. Strong Q1 Financial Performance
Yum Brands posted adjusted EPS of $1.50, a 15% year-over-year increase, GAAP net income of $432 million and revenue of $2.06 billion. The company also recognized $44 million net from a credit card interchange fee litigation settlement, with worldwide system sales up 6% ex-FX and unit count rising 5% with 1,030 new restaurants.
2. Taco Bell's Sales Surge and Digital Growth
Taco Bell delivered 8% same-store sales growth, surpassing the industry pace, with U.S. system sales up 10% and operating profit rising 16%. Digital system sales across Yum Brands neared $11 billion, accounting for a record 63% of total sales mix.
3. KFC's Moderate Sales and International Expansion
KFC posted 2% global same-store sales growth and added 648 gross new restaurants across 45 countries, boosting operating profit by 16%. Domestic system sales contracted 2% while international expansion drove overall unit growth.
4. Pizza Hut Underperformance and Strategic Review
Pizza Hut's global same-store sales were flat and U.S. same-store sales declined 4%, causing operating profit to fall 14%. Yum Brands recorded $37 million in charges tied to a strategic review of Pizza Hut as it explores potential divestiture options.