Yum profits strong in 2Q, some weakness in same-store sales

LOUISVILLE, Ky. (AP) — The company that owns KFC, Taco Bell and Pizza Hut is reporting healthy second-quarter profits, though sales at existing stores could create some unease.

Shares slipped more than 2 percent before the opening bell Thursday.

Yum Brands Inc. posted earnings of $321 million, or 97 cents per share. Excluding nonrecurring items, per-share earnings were 82 cents, or 8 cents better than industry analysts had expected, according to a survey by FactSet.

The Louisville, Kentucky, company earned $206 million, or 58 cents per share, in the same period last year.

Revenue slipped to $1.37 billion, from $1.45 billion, but that’s about in line with projections.

Sales at restaurants open at least a year edged up 1 percent, half the increase analyst expected.

Same-store sales at Pizza Hut dipped 1 percent, while both KFC and Taco Bell posted 2 percent increases.

The company has been pushing its brands and convenience to boost sales.

Yum cut a deal with Grubhub earlier this year to expand delivery nationwide. In the same month, one day after the NFL cut ties with Papa John’s, Yum announced a multiyear marketing agreement with the league.