Yum Brands Earnings Beat Estimates, Sales Miss

Yum Brands Inc. , whose restaurant chains include Taco Bell, KFC and Pizza Hut, reported fourth-quarter net income of $267.0 million, or 76 cents per share, compared with $275.0 million, or 66 cents per share, for the same period last year. Adjusted EPS excluding special items was 79 cents per share, beating the 73-cent FactSet consensus. Yum said it incurred $39 million in special items, including severance costs. Sales for the quarter totaled $2.02 billion, up from $1.98 billion, but below the $2.04 billion FactSet consensus. Global same-store sales increased 1% with both Taco Bell and KFC increasing 3% and Pizza Hut falling 2%. During the quarter, Yum Brands refranchised 232 restaurants, with franchise ownership mix reaching 93%. The Yum China Holdings Inc. separation was completed on Oct. 31, 2016. Yum Brands shares are nearly flat in Thursday premarket trading. Shares are up 39.3% for the past year while the S&P 500 index is up almost 24% for the same period.