Here's What Key Metrics Tell Us About Yum (YUM) Q2 Earnings

Core Insights - Yum Brands reported revenue of $1.76 billion for the quarter ended June 2024, reflecting a year-over-year increase of 4.5% but a revenue surprise of -1.89% compared to the Zacks Consensus Estimate of $1.8 billion [1] - The earnings per share (EPS) was $1.35, down from $1.41 in the same quarter last year, but exceeded the consensus estimate of $1.32 by 2.27% [1] Financial Performance Metrics - KFC Division's system same-store sales decreased by 3%, worse than the average estimate of -0.9% [2] - Pizza Hut Division's system same-store sales also fell by 3%, compared to the average estimate of -2.6% [2] - Taco Bell Division's system same-store sales increased by 5%, outperforming the average estimate of 2.9% [2] Revenue Breakdown - Franchise contributions for advertising and other services totaled $402 million, slightly below the average estimate of $412.23 million, representing a year-over-year increase of 2.8% [4] - Franchise and property revenues were $789 million, compared to the average estimate of $811.89 million, showing a year-over-year increase of 0.5% [5] - Company sales reached $572 million, exceeding the average estimate of $569.65 million, with a year-over-year increase of 11.9% [6] Division-Specific Revenues - KFC Division's franchise contributions for advertising and other services were $149 million, below the average estimate of $161.72 million, reflecting a year-over-year decrease of 1.3% [7] - Habit Burger Grill Division generated $141 million, falling short of the average estimate of $149.52 million [8] - Pizza Hut Division's franchise contributions for advertising and other services were $89 million, in line with the average estimate of $89.61 million, showing no year-over-year change [9] - Taco Bell Division's franchise contributions for advertising and other services reached $164 million, surpassing the average estimate of $159.62 million, with a year-over-year increase of 9.3% [10] - KFC Division's company sales were $163 million, exceeding the average estimate of $148.41 million, with a significant year-over-year increase of 41.7% [11] Stock Performance - Yum Brands shares have returned +4.2% over the past month, contrasting with the Zacks S&P 500 composite's -6.7% change [11] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [11]