Yum! Brands reports Q1 adjusted EPS $1.15, consensus $1.20

Reports Q1 revenue $1.6B, consensus $1.71B. Worldwide system sales grew 2%, excluding foreign currency translation, with KFC up 4%, Taco Bell up 4% and Pizza Hut down 4%. SSS was KFC down 2%, Taco Bell up 1% and Pizza Hut down 7%. David Gibbs, CEO, said “Despite a difficult operating environment, we delivered 6% Core Operating Profit growth demonstrating the resilience of our business model. As expected, same-store sales were pressured this quarter, but we are encouraged by strong 2-year same-store sales growth and positive momentum exiting the quarter. First-quarter unit growth was robust with over 800 new unit openings, leading to 6% unit growth and positioning us to surpass 60,000 restaurants this year. Our digital sales mix reached a new record, exceeding 50% for the first time in our history. Our world-class franchisees, globally iconic brands, and distinctive digital capabilities give me high confidence in our future growth.”