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Yum Brands shares up in premarket trade on Q2 profit beat, Pizza Hut sale
['Navamya Acharya', 'Min Read']
Yahoo Finance - Business Finance, Stock Market, Quotes, News
Taco Bell same-store sales grew 7% in the quarter, with system sales up 9% excluding currency effects, driven by U.S. system sales growth of 9% and same-store sales growth of 7%, the company said.
KFC unit growth was 7%, with system sales excluding currency effects up 6%, and digital system sales mix excluding Pizza Hut exceeding 60%.
Pizza Hut same-store sales fell 1% and system sales were flat excluding currency effects, with operating profit down 14% on a core basis, the company said, citing declines led by a 5% drop in U.S. system sales excluding currency effects.
Yum entered definitive agreements on June 16 to sell Pizza Hut, with the business outside mainland China going to private equity firm LongRange Capital and Pizza Hut in mainland China going to Yum China, which will remain Yum's master franchisee for KFC and Taco Bell in mainland China, according to the release.
Evercore ISI analyst David Palmer said the Pizza Hut divestiture would leave Yum "easier-to-manage, faster-growing, and capital-light."