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Fast-food chains, including Yum and rivals McDonalds <MCD.N> and
Chipotle Mexican Grill <CMG.N>, have been benefiting from
earlier investments in their digital presence, as online orders
jumped, especially when dining rooms were closed at the height
of the COVID-19 health crisis.
"For the second consecutive quarter, digital sales increased by
more than $1 billion over the prior year and set a single
quarter record of $4 billion," Chief Executive Officer David
Gibbs said.
Net income rose about 11% to $283 million in the third quarter,
as Yum recorded $8 million of pre-tax income due to the change
in fair value of its investment in food delivery firm Grubhub
Inc <GRUB.N>.
Yum said it disposed its investment in Grubhub, a food delivery
app it invested in over two years ago, during the quarter for
$206 million.
Grubhub will likely be bought by European online food-ordering
company Just Eat Takeaway.com NV <TKWY.AS> for $6.9 billion.
Yum's comparable sales fell 2% for the KFC owner in the quarter
ended Sept. 30, but beat the average analyst estimate of a 3.74%
slide, according to IBES data from Refinitiv.
Taco Bell posted comparable sales growth of 3%, well above the
estimate of a 1.75% rise.
At Pizza Hut, the company's pizza chain that has long been
grappling with stiff competition from Domino's Pizza and others,
comparable sales were down 3% and slipped 4% at KFC.
Excluding one-time items, the company earned $1.01 per share,
compared with the estimate of 80 cents.
Total revenue rose about 8% to $1.45 billion.
(Reporting by Nivedita Balu in Bengaluru; Editing by Shinjini
Ganguli)
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