Yum Brands Inc beat estimates for fourth-quarter revenue and profit on Thursday, as Americans bought more tacos, pizzas and fried chicken online even as business of the KFC owner remained pressured in certain European markets.
Shares of the company rose 3% in low volumes in premarket trading as Yum also said digital sales surged 45% to a record high of $17 billion in 2020.
Fast-food chains in the United States, including Yum and rivals McDonald’s and Chipotle Mexican Grill, have been benefiting from earlier investments in their online business as the pandemic led to a spike in online and drive-thru orders.
In the fourth quarter ended Dec. 31, Yum’s KFC and Pizza Hut divisions posted same-store sales growth of 8% each in the United States even as they dropped at least 4% each in international markets.
Yum’s KFC has begun switching to a new chicken sandwich with a larger white meat fillet in the place of its Crispy Colonel sandwich in the United States, while Pizza Hut has launched pizzas with plant-based meat maker Beyond Meat’s sausage.
Overall revenue rose about 3% to $1.74 billion, beating the Refinitiv IBES estimate of $1.72 billion. Excluding items, Yum earned $1.15 per share, beating the estimate of $1.01 apiece.
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