Yum! Brands Q2 Profit Surges 128% on Pizza Hut Sale Tax Benefit, Backs Long-Term Targets
YUM is trading near its 52-week low of $137.33 (10% above the low).
Summary
Yum! Brands reported Q2 net income soaring 128% to $853 million, driven by a tax benefit from the planned $2.7 billion Pizza Hut sale. Adjusted EPS of $1.62 beat the year-ago $1.44, and revenue jumped 12% to $2.17 billion. Taco Bell same-store sales rose 7% and KFC unit growth hit 7%, though a cyclospora outbreak caused a meaningful near-term sales impact at Taco Bell, with CEO Chris Turner noting that swift and transparent action reinforced trust in the brand. The company reaffirmed its 2022 long-term targets of 5% unit growth, 7% system sales growth, and 8% core operating profit growth, and highlighted the $4 billion buyback authorization. Shares dipped slightly pre-market on outbreak overhang, but underlying numbers remain strong.
At the time of this announcement, YUM was trading at $151.66 on NYSE in the Trade & Services sector, with a market capitalization of approximately $41.9B. The 52-week trading range was $137.33 to $170.14. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: dpa-AFX.