Yum! Brands (NYSE:YUM) shares have dipped around 1.5% ahead of the open on Wednesday after reporting earnings for its latest quarter, which missed revenue expectations.
The Pizza Hut and KFC owner reported Q3 EPS of $1.44, $0.16 better than the analyst estimate of $1.28. However, revenue for the quarter came in at $1.71 billion versus the consensus estimate of $1.77 billion.
Even so, YUM revealed that worldwide system sales grew 10%, with KFC at 12%, Taco Bell at 11%, and Pizza Hut at 4%. In addition, YUM reported 6% same-store sales growth and 6% unit growth.
"We're incredibly pleased to report yet another excellent quarter with 10% system sales growth driven by 6% same-store sales growth and 6% unit growth with a Q3 record of over 1,100 gross new units," said David Gibbs, YUM's CEO.
He added that the company's twin growth engines, KFC International and Taco Bell U.S., led the way, with KFC showing "broad-based strength across both developed and emerging markets."
YUM sees its full-year 2023 results outperforming on all aspects of its long-term growth algorithm.
"The exceptional performance of our teams and franchisees gives us confidence in sustaining our top and bottom line momentum in the years ahead," said Gibbs.