YUM! Brands Inc. (NYSE: YUM) topped earnings expectations for the first quarter of 2019 while revenues came in line with estimates. Shares were down 2.9% in premarket hours on Wednesday.
Total revenues fell 9% year-over-year to $1.25 billion, pulled down by a 35% drop in company sales. Franchise and property revenues grew 5%.
GAAP net income fell 39% to $262 million while EPS declined 35% to $0.83. Adjusted EPS decreased 8% to $0.82, but came ahead of the forecasts of $0.81.
During the quarter, YUM saw a 4% growth in same-store sales. Same-store sales grew 5% for the KFC division and 4% for the Taco Bell division but remained flat for Pizza Hut.
Worldwide system sales, excluding foreign currency translation, grew 8%, with KFC at 9%, Taco Bell at 7%, and Pizza Hut at 7%.
YUM saw revenues decline across all its business segments, hurt by lower company sales. Total revenues for KFC decreased 14% to $566 million while revenues for Pizza Hut fell 3% to $243 million. In the Taco Bell division, revenues declined 4% year-over-year to $445 million.
YUM opened 310 net units in the quarter. On a year-over-year basis, taking into account the strategic alliance with Telepizza in the fourth quarter of 2018, net new unit growth was 7%.
For full-year 2019, YUM expects adjusted EPS of at least $3.75.