Yum! Brands Reports Second-Quarter Results; 781 Gross Unit Openings and Digital System Sales of Nearly $6B; Resilient Global Business Led by Widespread Taco Bell Strength
Yum! Brands, Inc. reported a 3% increase in worldwide system sales for Q2 2022, excluding foreign currency translation. Same-store sales grew by 1%, with Taco Bell leading at 10%. Despite these gains, GAAP EPS fell 40% year-over-year to $0.77, and EPS excluding special items decreased by 9% to $1.05. The exit from Russia negatively impacted unit counts, showing a decline of 702 units during the quarter. Digital sales reached nearly $6 billion, demonstrating strong growth and resilience amid challenging conditions.
- Worldwide system sales grew 3%, excluding foreign currency translation.
- Taco Bell reported 10% same-store sales growth.
- Digital sales reached nearly $6 billion.
- GAAP EPS decreased by 40% year-over-year to $0.77.
- EPS excluding special items fell by 9% to $1.05.
- Total unit count declined by 702 units due to withdrawal from Russia.
DAVID GIBBS COMMENTS
-
In June, we completed the transfer of ownership of our Pizza Hut Russia business to a local operator who has initiated the process of re-branding locations to a non-Yum! concept. We are also in advanced stages of transferring ownership of our KFC Russia restaurants, operating system and master franchise rights, including the network of franchised restaurants, to a local operator who will be responsible for re-branding locations to a non-Yum! concept. Upon the completion of this process we will have fully exited from
Russia . -
As of the beginning of the second quarter, we have elected to remove
Russia from our unit count and system sales, which negatively impacted those key performance metrics as presented in our SECOND-QUARTER HIGHLIGHTS section and the remainder of this release. -
Removing
Russia from our prior year base, key performance metrics would have been as follows:
Key Performance Metrics Adjusted for |
% Change |
|
System Sales Ex F/X |
Units |
|
KFC Division |
+4 |
+7 |
Worldwide |
+5 |
+6 |
SECOND-QUARTER HIGHLIGHTS
-
Worldwide system sales grew
3% , excluding foreign currency translation, withKFC at1% ,Taco Bell at10% andPizza Hut flat. -
We added 781 gross units during the second quarter resulting in 463 net-new units1 offset by the removal of 1,165
Russia units for a total decline in unit count of 702 units during the quarter. -
Russia units do not impact our same-store sales results for the quarter. -
Worldwide same-store sales ex-
China grew6% during the quarter. -
Foreign currency translation unfavorably impacted divisional operating profit by
.$23 million
Reported Results |
% Change |
||||
System Sales Ex F/X |
Same-Store Sales |
Units |
GAAP Operating Profit |
Core Operating Profit2 |
|
KFC Division |
+1 |
(1) |
+3 |
(8) |
(2) |
Taco Bell Division |
+10 |
+8 |
+4 |
+9 |
+9 |
Pizza Hut Division |
Even |
(3) |
+4 |
(10) |
(7) |
Worldwide |
+3 |
+1 |
+4 |
(2) |
(1) |
1Net-new unit reflects gross unit openings offset by permanent store closures. The unit count decline from our decision to exit |
2 See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Core Operating Profit. |
All comparisons are versus the same period a year ago. |
System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further details. |
Digital system sales includes all transactions where consumers at system restaurants utilize ordering interaction that is primarily facilitated by automated technology. |
|
Second-Quarter |
Year-to-Date |
||||
|
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
GAAP EPS |
|
|
(40) |
|
|
(9) |
Special Items EPS1 |
|
|
NM |
|
|
NM |
EPS Excluding Special Items |
|
|
(9) |
|
|
(5) |
1 See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Special Items. |
KFC DIVISION
|
Second-Quarter |
Year-to-Date |
||||||
|
|
|
%/ppts Change |
|
|
%/ppts Change |
||
|
2022 |
2021 |
Reported |
Ex F/X |
2022 |
2021 |
Reported |
Ex F/X |
Restaurants |
26,521 |
25,720 |
+3 |
N/A |
26,521 |
25,720 |
+3 |
N/A |
System Sales ($MM) |
7,252 |
7,638 |
(5) |
+1 |
14,985 |
14,911 |
+1 |
+5 |
Same-Store Sales Growth (%) |
(1) |
+30 |
NM |
NM |
+1 |
+18 |
NM |
NM |
Franchise and Property Revenues ($MM) |
394 |
379 |
+4 |
+9 |
777 |
733 |
+6 |
+11 |
Operating Profit ($MM) |
293 |
318 |
(8) |
(2) |
584 |
618 |
(6) |
(1) |
Operating Margin (%) |
43.2 |
46.5 |
(3.3) |
(2.9) |
43.6 |
47.3 |
(3.7) |
(3.6) |
|
Second-Quarter (% Change) |
Year-to-Date (% Change) |
||
|
International |
|
International |
|
System Sales Growth Ex F/X |
+2 |
(6) |
+6 |
(2) |
Same-Store Sales Growth |
+1 |
(7) |
+2 |
(3) |
-
We removed 1,112 units in
Russia from our globalKFC unit count, or4% of units. - KFC Division opened 405 gross new restaurants in 54 countries during the quarter.
-
KFC Division ex-
China same-store sales grew7% . -
As a result of our decision to exit the
Russia business, KFC Division year-over-year operating profit growth excluding foreign currency was negatively impacted by 4 percentage points. -
Foreign currency translation unfavorably impacted operating profit by
.$19 million
KFC Markets1 |
Percent of System Sales2 |
System Sales Growth Ex F/X |
|
Second-Quarter (% Change) |
Year-to-Date (% Change) |
||
|
|
(15) |
(10) |
|
|
(6) |
(2) |
|
|
+7 |
+6 |
|
|
+31 |
+34 |
|
|
(8) |
(1) |
|
|
+7 |
+6 |
|
|
+32 |
+33 |
|
|
+41 |
+41 |
|
|
+23 |
+24 |
|
|
(1) |
+1 |
|
|
+22 |
+21 |
|
|
+103 |
+69 |
1Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets. |
2Reflects Full Year 2021 adjusted for the exclusion of |
TACO BELL DIVISION
|
Second-Quarter |
Year-to-Date |
||||||
|
|
|
%/ppts Change |
|
|
%/ppts Change |
||
|
2022 |
2021 |
Reported |
Ex F/X |
2022 |
2021 |
Reported |
Ex F/X |
Restaurants |
7,900 |
7,567 |
+4 |
N/A |
7,900 |
7,567 |
+4 |
N/A |
System Sales ($MM) |
3,509 |
3,189 |
+10 |
+10 |
6,617 |
6,069 |
+9 |
+9 |
Same-Store Sales Growth (%) |
+8 |
+21 |
NM |
NM |
+6 |
+15 |
NM |
NM |
Franchise and Property Revenues ($MM) |
199 |
179 |
+11 |
+12 |
378 |
341 |
+11 |
+11 |
Operating Profit ($MM) |
215 |
198 |
+9 |
+9 |
400 |
376 |
+6 |
+7 |
Operating Margin (%) |
36.7 |
37.2 |
(0.5) |
(0.4) |
36.2 |
36.8 |
(0.6) |
(0.5) |
- Taco Bell Division opened 82 gross new restaurants in 13 countries.
-
Taco Bell
U.S. system sales grew9% andTaco Bell International system sales grew31% . -
Taco Bell
U.S. same-store sales grew8% andTaco Bell International same-store sales grew9% . -
Company-owned restaurant margins were approximately
26% , in-line year-over-year.
PIZZA HUT DIVISION
|
Second-Quarter |
Year-to-Date |
||||||
|
|
|
%/ppts Change |
|
|
%/ppts Change |
||
|
2022 |
2021 |
Reported |
Ex F/X |
2022 |
2021 |
Reported |
Ex F/X |
Restaurants |
18,591 |
17,809 |
+4 |
N/A |
18,591 |
17,809 |
+4 |
N/A |
System Sales ($MM) |
3,039 |
3,143 |
(3) |
Even |
6,199 |
6,239 |
(1) |
+2 |
Same-Store Sales Growth (%) |
(3) |
+10 |
NM |
NM |
(1) |
+11 |
NM |
NM |
Franchise and Property Revenues ($MM) |
142 |
147 |
(3) |
+1 |
293 |
288 |
+2 |
+4 |
Operating Profit ($MM) |
93 |
103 |
(10) |
(7) |
195 |
205 |
(5) |
(2) |
Operating Margin (%) |
39.2 |
41.3 |
(2.1) |
(1.5) |
40.7 |
41.0 |
(0.3) |
0.1 |
|
Second-Quarter (% Change) |
Year-to-Date (% Change) |
||
|
International |
|
International |
|
System Sales Growth Ex F/X |
+3 |
(3) |
+6 |
(4) |
Same-Store Sales Growth |
(2) |
(4) |
+2 |
(5) |
-
We removed 53 units in
Russia from our globalPizza Hut unit count. - Pizza Hut Division opened 287 gross new restaurants in 43 countries during the quarter.
-
Pizza Hut International ex-China same-store sales grew6% . -
Foreign currency translation unfavorably impacted operating profit by
.$3 million
Pizza Hut Markets1 |
Percent of Pizza Hut System Sales2 |
System Sales Growth Ex F/X |
|
Second-Quarter (% Change) |
Year-to-Date (% Change) |
||
|
|
(3) |
(4) |
|
|
(14) |
(8) |
|
|
+1 |
+4 |
|
|
+16 |
+17 |
|
|
+13 |
+20 |
|
|
+18 |
+17 |
|
|
+6 |
+6 |
|
|
+79 |
+61 |
|
< |
(2) |
+7 |
1Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets. |
2Reflects Full Year 2021 adjusted for the exclusion of |
HABIT BURGER GRILL DIVISION
-
The Habit Burger Grill Division grew system sales
10% for the quarter. -
The Habit Burger Grill Division opened 7 gross new restaurants in the
U.S. -
The Habit Burger Grill Division same-store sales decreased
4% for the quarter.
OTHER ITEMS
-
On
April 1 we issued of$1.0 billion 5.375% YUM Senior Unsecured Notes due in 2032. Proceeds were used to repay of$600 million 7.75% YUM Senior Unsecured Notes due in 2025, including the prepayment premium, and for general corporate purposes. -
Disclosures pertaining to outstanding debt in our
Restricted Group capital structure will be provided at the time of the filing of the second-quarter Form 10-Q.
CONFERENCE CALL
The call will be available for playback beginning at
The webcast and the playback can be accessed by visiting
ADDITIONAL INFORMATION ONLINE
Quarter end dates for each division, restaurant count details, definitions of terms and
FORWARD-LOOKING STATEMENTS
This announcement may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “expect,” “expectation,” “believe,” “anticipate,” “may,” “could,” “intend,” “belief,” “plan,” “estimate,” “target,” “predict,” “likely,” “seek,” “project,” “model,” “ongoing,” “will,” “should,” “forecast,” “outlook” or similar terminology. These statements are based on and reflect our current expectations, estimates, assumptions and/or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance or capital structure of
Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: the severity and duration of the COVID-19 pandemic, food safety and food borne-illness issues; health concerns arising from outbreaks of a significant health epidemic; the success of our franchisees and licensees; our significant exposure to the Chinese market; changes in economic and political conditions in countries and territories outside of the
The forward-looking statements included in this announcement are only made as of the date of this announcement and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances. You should consult our filings with the
|
|
|||||||||||||
Condensed Consolidated Summary of Results (amounts in millions, except per share amounts) (unaudited) |
||||||||||||||
|
|
|||||||||||||
|
Quarter ended |
% Change |
Year to date |
% Change |
||||||||||
|
|
|
B/(W) |
|
|
B/(W) |
||||||||
Revenues |
|
|
|
|
|
|
||||||||
Company sales |
$ |
499 |
|
$ |
520 |
|
(4) |
$ |
969 |
|
$ |
996 |
|
(3) |
Franchise and property revenues |
|
737 |
|
|
706 |
|
4 |
|
1,451 |
|
|
1,364 |
|
6 |
Franchise contributions for advertising and other services |
|
400 |
|
|
376 |
|
6 |
|
763 |
|
|
728 |
|
5 |
Total revenues |
|
1,636 |
|
|
1,602 |
|
2 |
|
3,183 |
|
|
3,088 |
|
3 |
|
|
|
|
|
|
|
||||||||
Costs and Expenses, Net |
|
|
|
|
|
|
||||||||
Company restaurant expenses |
|
415 |
|
|
417 |
|
1 |
|
817 |
|
|
809 |
|
(1) |
General and administrative expenses |
|
254 |
|
|
230 |
|
(11) |
|
507 |
|
|
436 |
|
(17) |
Franchise and property expenses |
|
29 |
|
|
27 |
|
(10) |
|
61 |
|
|
50 |
|
(24) |
Franchise advertising and other services expense |
|
396 |
|
|
372 |
|
(6) |
|
757 |
|
|
715 |
|
(6) |
Refranchising (gain) loss |
|
(8 |
) |
|
(7 |
) |
34 |
|
(12 |
) |
|
(22 |
) |
(43) |
Other (income) expense |
|
(4 |
) |
|
(4 |
) |
NM |
|
(10 |
) |
|
(10 |
) |
NM |
Total costs and expenses, net |
|
1,082 |
|
|
1,035 |
|
(4) |
|
2,120 |
|
|
1,978 |
|
(7) |
|
|
|
|
|
|
|
||||||||
Operating Profit |
|
554 |
|
|
567 |
|
(2) |
|
1,063 |
|
|
1,110 |
|
(4) |
Investment (income) expense, net |
|
15 |
|
|
(1 |
) |
NM |
|
8 |
|
|
(1 |
) |
NM |
Other pension (income) expense |
|
1 |
|
|
2 |
|
86 |
|
1 |
|
|
5 |
|
84 |
Interest expense, net |
|
148 |
|
|
159 |
|
6 |
|
266 |
|
|
290 |
|
8 |
Income before income taxes |
|
390 |
|
|
407 |
|
(4) |
|
788 |
|
|
816 |
|
(3) |
Income tax provision |
|
166 |
|
|
16 |
|
NM |
|
165 |
|
|
99 |
|
(67) |
Net Income |
$ |
224 |
|
$ |
391 |
|
(43) |
$ |
623 |
|
$ |
717 |
|
(13) |
|
|
|
|
|
|
|
||||||||
Basic EPS |
|
|
|
|
|
|
||||||||
EPS |
$ |
0.78 |
|
$ |
1.31 |
|
(40) |
$ |
2.16 |
|
$ |
2.39 |
|
(10) |
Average shares outstanding |
|
286 |
|
|
298 |
|
4 |
|
288 |
|
|
299 |
|
4 |
|
|
|
|
|
|
|
||||||||
Diluted EPS |
|
|
|
|
|
|
||||||||
EPS |
$ |
0.77 |
|
$ |
1.29 |
|
(40) |
$ |
2.13 |
|
$ |
2.35 |
|
(9) |
Average shares outstanding |
|
290 |
|
|
304 |
|
4 |
|
292 |
|
|
304 |
|
4 |
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
$ |
0.57 |
|
$ |
0.50 |
|
|
$ |
1.14 |
|
$ |
1.00 |
|
|
See accompanying notes. |
Percentages may not recompute due to rounding. |
KFC DIVISION Operating Results (amounts in millions) (unaudited) |
||||||||||||||
|
Quarter ended |
% Change |
Year to date |
% Change |
||||||||||
|
|
|
B/(W) |
|
|
B/(W) |
||||||||
|
|
|
|
|
|
|
||||||||
Company sales |
$ |
115 |
|
$ |
147 |
|
(22) |
$ |
241 |
|
$ |
280 |
|
(14) |
Franchise and property revenues |
|
394 |
|
|
379 |
|
4 |
|
777 |
|
|
733 |
|
6 |
Franchise contributions for advertising and other services |
|
168 |
|
|
156 |
|
8 |
|
319 |
|
|
294 |
|
9 |
Total revenues |
|
677 |
|
|
682 |
|
(1) |
|
1,337 |
|
|
1,307 |
|
2 |
|
|
|
|
|
|
|||||||||
Company restaurant expenses |
|
102 |
|
|
118 |
|
15 |
|
210 |
|
|
229 |
|
8 |
General and administrative expenses |
|
89 |
|
|
80 |
|
(12) |
|
173 |
|
|
153 |
|
(14) |
Franchise and property expenses |
|
14 |
|
|
15 |
|
3 |
|
38 |
|
|
29 |
|
(32) |
Franchise advertising and other services expense |
|
163 |
|
|
151 |
|
(7) |
|
314 |
|
|
284 |
|
(10) |
Other (income) expense |
|
16 |
|
|
— |
|
NM |
|
18 |
|
|
(6 |
) |
NM |
Total costs and expenses, net |
|
384 |
|
|
364 |
|
(5) |
|
753 |
|
|
689 |
|
(9) |
Operating Profit |
$ |
293 |
|
$ |
318 |
|
(8) |
$ |
584 |
|
$ |
618 |
|
(6) |
|
|
|
|
|
|
|
||||||||
Company restaurant margin %1 |
|
11.6 |
% |
|
19.2 |
% |
(7.6) ppts. |
|
12.9 |
% |
|
18.0 |
% |
(5.1) ppts. |
|
|
|
|
|
|
|
||||||||
Operating margin |
|
43.2 |
% |
|
46.5 |
% |
(3.3) ppts. |
|
43.6 |
% |
|
47.3 |
% |
(3.7) ppts. |
See accompanying notes. |
Percentages may not recompute due to rounding. |
1See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Company restaurant margin %. |
|
|
|||||||||||||
TACO BELL DIVISION Operating Results (amounts in millions) (unaudited) |
||||||||||||||
|
|
|||||||||||||
|
Quarter ended |
% Change |
Year to date |
% Change |
||||||||||
|
|
|
B/(W) |
|
|
B/(W) |
||||||||
|
|
|
|
|
|
|
||||||||
Company sales |
$ |
243 |
|
$ |
223 |
|
9 |
$ |
457 |
|
$ |
431 |
|
6 |
Franchise and property revenues |
|
199 |
|
|
179 |
|
11 |
|
378 |
|
|
341 |
|
11 |
Franchise contributions for advertising and other services |
|
144 |
|
|
130 |
|
10 |
|
268 |
|
|
248 |
|
8 |
Total revenues |
|
586 |
|
|
532 |
|
10 |
|
1,103 |
|
|
1,020 |
|
8 |
|
|
|
|
|
|
|
||||||||
Company restaurant expenses |
|
181 |
|
|
165 |
|
(9) |
|
348 |
|
|
323 |
|
(8) |
General and administrative expenses |
|
39 |
|
|
33 |
|
(18) |
|
75 |
|
|
64 |
|
(17) |
Franchise and property expenses |
|
8 |
|
|
7 |
|
(15) |
|
14 |
|
|
14 |
|
(2) |
Franchise advertising and other services expense |
|
144 |
|
|
130 |
|
(11) |
|
267 |
|
|
246 |
|
(9) |
Other (income) expense |
|
(1 |
) |
|
(1 |
) |
NM |
|
(1 |
) |
|
(3 |
) |
NM |
Total costs and expenses, net |
|
371 |
|
|
334 |
|
(11) |
|
703 |
|
|
644 |
|
(9) |
Operating Profit |
$ |
215 |
|
$ |
198 |
|
9 |
$ |
400 |
|
$ |
376 |
|
6 |
|
|
|
|
|
|
|
||||||||
Company restaurant margin %1 |
|
25.7 |
% |
|
25.9 |
% |
(0.2) ppts. |
|
23.9 |
% |
|
25.0 |
% |
(1.1) ppts. |
|
|
|
|
|
|
|
||||||||
Operating margin |
|
36.7 |
% |
|
37.2 |
% |
(0.5) ppts. |
|
36.2 |
% |
|
36.8 |
% |
(0.6) ppts. |
See accompanying notes. |
Percentages may not recompute due to rounding. |
1See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Company restaurant margin %. |
|
|
|||||||||||||
PIZZA HUT DIVISION Operating Results (amounts in millions) (unaudited) |
||||||||||||||
|
|
|||||||||||||
|
Quarter ended |
% Change |
Year to date |
% Change |
||||||||||
|
|
|
B/(W) |
|
|
B/(W) |
||||||||
|
|
|
|
|
|
|
||||||||
Company sales |
$ |
5 |
|
$ |
12 |
|
(62) |
$ |
10 |
|
$ |
26 |
|
(64) |
Franchise and property revenues |
|
142 |
|
|
147 |
|
(3) |
|
293 |
|
|
288 |
|
2 |
Franchise contributions for advertising and other services |
|
88 |
|
|
90 |
|
(2) |
|
176 |
|
|
186 |
|
(5) |
Total revenues |
|
235 |
|
|
249 |
|
(6) |
|
479 |
|
|
500 |
|
(4) |
|
|
|
|
|
|
|
||||||||
Company restaurant expenses |
|
5 |
|
|
11 |
|
56 |
|
10 |
|
|
24 |
|
59 |
General and administrative expenses |
|
50 |
|
|
43 |
|
(18) |
|
100 |
|
|
83 |
|
(20) |
Franchise and property expenses |
|
2 |
|
|
5 |
|
51 |
|
4 |
|
|
7 |
|
37 |
Franchise advertising and other services expense |
|
88 |
|
|
91 |
|
3 |
|
175 |
|
|
185 |
|
5 |
Other (income) expense |
|
(3 |
) |
|
(4 |
) |
NM |
|
(5 |
) |
|
(4 |
) |
NM |
Total costs and expenses, net |
|
142 |
|
|
146 |
|
2 |
|
284 |
|
|
295 |
|
4 |
Operating Profit |
$ |
93 |
|
$ |
103 |
|
(10) |
$ |
195 |
|
$ |
205 |
|
(5) |
|
|
|
|
|
|
|
||||||||
Company restaurant margin %1 |
|
(8.0 |
)% |
|
8.0 |
% |
(16.0) ppts. |
|
(4.4 |
)% |
|
7.3 |
% |
(11.7) ppts. |
|
|
|
|
|
|
|
||||||||
Operating margin |
|
39.2 |
% |
|
41.3 |
% |
(2.1) ppts. |
|
40.7 |
% |
|
41.0 |
% |
(0.3) ppts. |
See accompanying notes. |
Percentages may not recompute due to rounding. |
1See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Company restaurant margin %. |
Condensed Consolidated Balance Sheets (amounts in millions) |
||||||
|
(unaudited)
|
|
||||
ASSETS |
|
|
||||
Current Assets |
|
|
||||
Cash and cash equivalents |
$ |
412 |
|
$ |
486 |
|
Accounts and notes receivable, less allowance: |
|
598 |
|
|
596 |
|
Prepaid expenses and other current assets |
|
419 |
|
|
450 |
|
Total Current Assets |
|
1,429 |
|
|
1,532 |
|
|
|
|
||||
Property, plant and equipment, net of accumulated depreciation of |
|
|
||||
and |
|
1,192 |
|
|
1,207 |
|
|
|
649 |
|
|
657 |
|
Intangible assets, net |
|
361 |
|
|
359 |
|
Other assets |
|
1,457 |
|
|
1,487 |
|
Deferred income taxes |
|
702 |
|
|
724 |
|
Total Assets |
$ |
5,790 |
|
$ |
5,966 |
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' DEFICIT |
|
|
||||
Current Liabilities |
|
|
||||
Accounts payable and other current liabilities |
$ |
1,090 |
|
$ |
1,334 |
|
Income taxes payable |
|
21 |
|
|
13 |
|
Short-term borrowings |
|
72 |
|
|
68 |
|
Total Current Liabilities |
|
1,183 |
|
|
1,415 |
|
|
|
|
||||
Long-term debt |
|
11,540 |
|
|
11,178 |
|
Other liabilities and deferred credits |
|
1,635 |
|
|
1,746 |
|
Total Liabilities |
|
14,358 |
|
|
14,339 |
|
|
|
|
||||
Shareholders' Deficit |
|
|
||||
Common Stock, no par value, 750 shares authorized; 285 shares issued in 2022 and 289 issued in 2021 |
|
— |
|
|
— |
|
Accumulated deficit |
|
(8,274 |
) |
|
(8,048 |
) |
Accumulated other comprehensive loss |
|
(294 |
) |
|
(325 |
) |
Total Shareholders' Deficit |
|
(8,568 |
) |
|
(8,373 |
) |
Total Liabilities and Shareholders' Deficit |
$ |
5,790 |
|
$ |
5,966 |
|
See accompanying notes. |
Condensed Consolidated Statements of Cash Flows (amounts in millions) (unaudited) |
||||||
|
Year to date |
|||||
|
|
|
||||
Cash Flows - Operating Activities |
|
|
||||
Net Income |
$ |
623 |
|
$ |
717 |
|
Depreciation and amortization |
|
71 |
|
|
78 |
|
Refranchising (gain) loss |
|
(12 |
) |
|
(22 |
) |
Investment (income) expense, net |
|
8 |
|
|
(1 |
) |
Deferred income taxes |
|
— |
|
|
(41 |
) |
Share-based compensation expense |
|
45 |
|
|
38 |
|
Changes in accounts and notes receivable |
|
(4 |
) |
|
25 |
|
Changes in prepaid expenses and other current assets |
|
(2 |
) |
|
(11 |
) |
Changes in accounts payable and other current liabilities |
|
(213 |
) |
|
(95 |
) |
Changes in income taxes payable |
|
(23 |
) |
|
(25 |
) |
Other, net |
|
29 |
|
|
110 |
|
Net Cash Provided by Operating Activities |
|
522 |
|
|
773 |
|
|
|
|
||||
Cash Flows - Investing Activities |
|
|
||||
Capital spending |
|
(97 |
) |
|
(84 |
) |
Proceeds from refranchising of restaurants |
|
41 |
|
|
43 |
|
Other, net |
|
(8 |
) |
|
33 |
|
|
|
(64 |
) |
|
(8 |
) |
|
|
|
||||
Cash Flows - Financing Activities |
|
|
||||
Proceeds from long-term debt |
|
999 |
|
|
1,900 |
|
Repayments of long-term debt |
|
(658 |
) |
|
(2,002 |
) |
Revolving credit facilities, three months or less, net |
|
— |
|
|
— |
|
Short-term borrowings by original maturity |
|
|
||||
More than three months - proceeds |
|
— |
|
|
— |
|
More than three months - payments |
|
— |
|
|
— |
|
Three months or less, net |
|
— |
|
|
— |
|
Repurchase shares of Common Stock |
|
(557 |
) |
|
(530 |
) |
Dividends paid on Common Stock |
|
(327 |
) |
|
(299 |
) |
Debt issuance costs |
|
(11 |
) |
|
(18 |
) |
Other, net |
|
(32 |
) |
|
(17 |
) |
|
|
(586 |
) |
|
(966 |
) |
Effect of Exchange Rate on Cash and Cash Equivalents |
|
(15 |
) |
|
11 |
|
|
|
(143 |
) |
|
(190 |
) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - Beginning of Period |
|
771 |
|
|
1,024 |
|
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - End of Period |
$ |
628 |
$ |
834 |
See accompanying notes. |
Reconciliation of Non-GAAP Measurements to GAAP Results
(amounts in millions, except per share amounts)
(unaudited)
In addition to the results provided in accordance with Generally Accepted Accounting Principles in
- Diluted Earnings Per Share ("EPS") excluding Special Items (as defined below);
- Effective Tax Rate excluding Special Items;
- Core Operating Profit. Core Operating Profit excludes Special Items and foreign currency translation (“F/X”) and we use Core Operating Profit for the purposes of evaluating performance internally;
- Company restaurant profit and Company restaurant margin as a percentage of sales (as defined below).
These non-GAAP measurements are not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of these non-GAAP measurements provide additional information to investors to facilitate the comparison of past and present operations.
Special Items are not included in any of our Division segment results as the Company does not believe they are indicative of our ongoing operations due to their size and/or nature. Our chief operating decision maker does not consider the impact of Special Items when assessing segment performance. The Special Items are described in (a) - (h) in the accompanying notes.
Company restaurant profit is defined as Company sales less Company restaurant expenses, both of which appear on the face of our Condensed Consolidated Statements of Income. Company restaurant expenses include those expenses incurred directly by our Company-owned restaurants in generating Company sales, including cost of food and paper, cost of restaurant-level labor, rent, depreciation and amortization of restaurant-level assets and advertising expenses incurred by and on behalf of that Company restaurant. Company restaurant margin as a percentage of sales ("Company restaurant margin %") is defined as Company restaurant profit divided by Company sales. We use Company restaurant profit for the purposes of internally evaluating the performance of our Company-owned restaurants and we believe Company restaurant profit provides useful information to investors as to the profitability of our Company-owned restaurants. In calculating Company restaurant profit, the Company excludes revenues and expenses directly associated with our franchise operations as well as non-restaurant-level costs included in General and administrative expenses, some of which may support Company-owned restaurant operations. The Company also excludes restaurant-level asset impairment and closures expenses, which have historically not been significant, from the determination of Company restaurant profit as such expenses are not believed to be indicative of ongoing operations. Company restaurant profit and Company restaurant margin % as presented may not be comparable to other similarly titled measures of other companies in the industry.
Certain non-GAAP measurements are presented excluding the impact of F/X. These amounts are derived by translating current year results at prior year average exchange rates. We believe the elimination of the F/X impact provides better year-to-year comparability without the distortion of foreign currency fluctuations.
|
Quarter ended |
Year to date |
||||||||||
|
|
|
|
|
||||||||
Detail of Special Items |
|
|
|
|
||||||||
Refranchising gain (loss)(a) |
$ |
— |
|
$ |
2 |
|
$ |
4 |
|
$ |
4 |
|
Operating profit impact from decision to exit |
|
14 |
|
|
— |
|
|
21 |
|
|
— |
|
Charges associated with resource optimization(c) |
|
— |
|
|
(2 |
) |
|
— |
|
|
(3 |
) |
Other Special Items Income (Expense) |
|
— |
|
|
— |
|
|
(1 |
) |
|
1 |
|
Special Items Income (Expense) - Operating Profit |
|
14 |
|
|
— |
|
|
24 |
|
|
2 |
|
Charges associated with resource optimization - Other pension (expense) income(c) |
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
Interest expense, net(d) |
|
(28 |
) |
|
(34 |
) |
|
(28 |
) |
|
(34 |
) |
Special Items Expense before Income Taxes |
|
(14 |
) |
|
(33 |
) |
|
(4 |
) |
|
(31 |
) |
Tax (Expense) Benefit on Special Items(e) |
|
2 |
|
|
8 |
|
|
— |
|
|
7 |
|
Tax Benefit - Intra-entity transfer of intellectual property(f) |
|
— |
|
|
64 |
|
|
— |
|
|
64 |
|
Tax Benefit - Newly issued |
|
— |
|
|
— |
|
|
82 |
|
|
— |
|
Tax (Expense) - Income tax impacts from decision to exit |
|
(71 |
) |
|
— |
|
|
(71 |
) |
|
— |
|
Special Items Income (Expense), net of tax |
$ |
(83 |
) |
$ |
39 |
|
$ |
7 |
|
$ |
40 |
|
Average diluted shares outstanding |
|
290 |
|
|
304 |
|
|
292 |
|
|
304 |
|
Special Items diluted EPS |
$ |
(0.28 |
) |
$ |
0.13 |
|
$ |
0.03 |
|
$ |
0.13 |
|
|
|
|
|
|
||||||||
Reconciliation of GAAP Operating Profit to Core Operating Profit |
|
|
|
|
||||||||
|
|
|
|
|
||||||||
Consolidated |
|
|
|
|
||||||||
GAAP Operating Profit |
$ |
554 |
|
$ |
567 |
|
$ |
1,063 |
|
$ |
1,110 |
|
Special Items Income (Expense) |
|
14 |
|
|
— |
|
|
24 |
|
|
2 |
|
Foreign Currency Impact on Divisional Operating Profit |
|
(23 |
) |
|
N/A |
|
|
(37 |
) |
|
N/A |
|
Core Operating Profit |
$ |
563 |
|
$ |
567 |
|
$ |
1,076 |
|
$ |
1,108 |
|
|
|
|
|
|
||||||||
KFC Division |
|
|
|
|
||||||||
GAAP Operating Profit |
$ |
293 |
|
$ |
318 |
|
$ |
584 |
|
$ |
618 |
|
Foreign Currency Impact on Divisional Operating Profit |
|
(19 |
) |
|
N/A |
|
|
(31 |
) |
|
N/A |
|
Core Operating Profit |
$ |
312 |
|
$ |
318 |
|
$ |
615 |
|
$ |
618 |
|
Taco Bell Division |
|
|
|
|
||||||||
GAAP Operating Profit |
$ |
215 |
|
$ |
198 |
|
$ |
400 |
|
$ |
376 |
|
Foreign Currency Impact on Divisional Operating Profit |
|
(1 |
) |
|
N/A |
|
|
(1 |
) |
|
N/A |
|
Core Operating Profit |
$ |
216 |
|
$ |
198 |
|
$ |
401 |
|
$ |
376 |
|
|
|
|
|
|
||||||||
Pizza Hut Division |
|
|
|
|
||||||||
GAAP Operating Profit |
$ |
93 |
|
$ |
103 |
|
$ |
195 |
|
$ |
205 |
|
Foreign Currency Impact on Divisional Operating Profit |
|
(3 |
) |
|
N/A |
|
|
(5 |
) |
|
N/A |
|
Core Operating Profit |
$ |
96 |
|
$ |
103 |
|
$ |
200 |
|
$ |
205 |
|
|
|
|
|
|
||||||||
Habit Burger Grill Division |
|
|
|
|
||||||||
GAAP Operating Profit |
$ |
(2 |
) |
$ |
5 |
|
$ |
(10 |
) |
$ |
5 |
|
Foreign Currency Impact on Divisional Operating Profit |
|
— |
|
|
N/A |
|
|
— |
|
|
N/A |
|
Core Operating Profit |
$ |
(2 |
) |
$ |
5 |
|
$ |
(10 |
) |
$ |
5 |
|
|
|
|
|
|
||||||||
Reconciliation of Diluted EPS to Diluted EPS excluding Special Items |
|
|
|
|
||||||||
Diluted EPS |
$ |
0.77 |
|
$ |
1.29 |
|
$ |
2.13 |
|
$ |
2.35 |
|
Special Items Diluted EPS |
|
(0.28 |
) |
|
0.13 |
|
|
0.03 |
|
|
0.13 |
|
Diluted EPS excluding Special Items |
$ |
1.05 |
|
$ |
1.16 |
|
$ |
2.10 |
|
$ |
2.22 |
|
|
|
|
|
|
||||||||
Reconciliation of GAAP Effective Tax Rate to Effective Tax Rate excluding Special Items |
|
|
|
|
||||||||
GAAP Effective Tax Rate |
|
42.6 |
% |
|
4.0 |
% |
|
21.0 |
% |
|
12.1 |
% |
Impact on Tax Rate as a result of Special Items |
|
18.4 |
% |
|
(16.0 |
)% |
|
(1.3 |
)% |
|
(8.0 |
)% |
Effective Tax Rate excluding Special Items |
|
24.2 |
% |
|
20.0 |
% |
|
22.3 |
% |
|
20.1 |
% |
|
|
|
|
|
Reconciliation of GAAP Operating Profit to Company Restaurant Profit |
||||||||||||||||||
|
Quarter ended |
|||||||||||||||||
|
Division |
Division |
Division |
Habit
Division |
Corporate and Unallocated |
Consolidated |
||||||||||||
GAAP Operating Profit (Loss) |
$ |
293 |
|
$ |
215 |
|
$ |
93 |
|
$ |
(2 |
) |
$ |
(45 |
) |
$ |
554 |
|
Less: |
|
|
|
|
|
|
||||||||||||
Franchise and property revenues |
|
394 |
|
|
199 |
|
|
142 |
|
|
2 |
|
|
— |
|
|
737 |
|
Franchise contributions for advertising and other services |
|
168 |
|
|
144 |
|
|
88 |
|
|
— |
|
|
— |
|
|
400 |
|
Add: |
|
|
|
|
|
|
||||||||||||
General and administrative expenses |
|
89 |
|
|
39 |
|
|
50 |
|
|
11 |
|
|
65 |
|
|
254 |
|
Franchise and property expenses |
|
14 |
|
|
8 |
|
|
2 |
|
|
1 |
|
|
4 |
|
|
29 |
|
Franchise advertising and other services expense |
|
163 |
|
|
144 |
|
|
88 |
|
|
1 |
|
|
— |
|
|
396 |
|
Refranchising (gain) loss |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(8 |
) |
|
(8 |
) |
Other (income) expense |
|
16 |
|
|
(1 |
) |
|
(3 |
) |
|
— |
|
|
(16 |
) |
|
(4 |
) |
Company restaurant profit |
$ |
13 |
|
$ |
62 |
|
$ |
— |
|
$ |
9 |
|
$ |
— |
|
$ |
84 |
|
Company sales |
$ |
115 |
|
$ |
243 |
|
$ |
5 |
|
$ |
136 |
|
$ |
— |
|
$ |
499 |
|
Company restaurant margin % |
|
11.6 |
% |
|
25.7 |
% |
|
(8.0 |
)% |
|
6.0 |
% |
|
N/A |
|
|
16.8 |
% |
|
Quarter ended |
|||||||||||||||||
|
Division |
Division |
Division |
Habit
Division |
Corporate and Unallocated |
Consolidated |
||||||||||||
GAAP Operating Profit (Loss) |
$ |
318 |
|
$ |
198 |
|
$ |
103 |
|
$ |
5 |
|
$ |
(57 |
) |
$ |
567 |
|
Less: |
|
|
|
|
|
|
||||||||||||
Franchise and property revenues |
|
379 |
|
|
179 |
|
|
147 |
|
|
1 |
|
|
— |
|
|
706 |
|
Franchise contributions for advertising and other services |
|
156 |
|
|
130 |
|
|
90 |
|
|
— |
|
|
— |
|
|
376 |
|
Add: |
|
|
|
|
|
|
||||||||||||
General and administrative expenses |
|
80 |
|
|
33 |
|
|
43 |
|
|
11 |
|
|
63 |
|
|
230 |
|
Franchise and property expenses |
|
15 |
|
|
7 |
|
|
5 |
|
|
— |
|
|
— |
|
|
27 |
|
Franchise advertising and other services expense |
|
151 |
|
|
130 |
|
|
91 |
|
|
— |
|
|
— |
|
|
372 |
|
Refranchising (gain) loss |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(7 |
) |
|
(7 |
) |
Other (income) expense |
|
— |
|
|
(1 |
) |
|
(4 |
) |
|
— |
|
|
1 |
|
|
(4 |
) |
Company restaurant profit |
$ |
29 |
|
$ |
58 |
|
$ |
1 |
|
$ |
15 |
|
$ |
— |
|
$ |
103 |
|
Company sales |
$ |
147 |
|
$ |
223 |
|
$ |
12 |
|
$ |
138 |
|
$ |
— |
|
$ |
520 |
|
Company restaurant margin % |
|
19.2 |
% |
|
25.9 |
% |
|
8.0 |
% |
|
11.6 |
% |
|
N/A |
|
|
19.8 |
% |
|
Year to date |
|||||||||||||||||
|
Division |
Division |
Division |
Habit
Division |
Corporate and Unallocated |
Consolidated |
||||||||||||
GAAP Operating Profit (Loss) |
$ |
584 |
|
$ |
400 |
|
$ |
195 |
|
$ |
(10 |
) |
$ |
(106 |
) |
$ |
1,063 |
|
Less: |
|
|
|
|
|
|
||||||||||||
Franchise and property revenues |
|
777 |
|
|
378 |
|
|
293 |
|
|
3 |
|
|
— |
|
|
1,451 |
|
Franchise contributions for advertising and other services |
|
319 |
|
|
268 |
|
|
176 |
|
|
— |
|
|
— |
|
|
763 |
|
Add: |
|
|
|
|
|
|
||||||||||||
General and administrative expenses |
|
173 |
|
|
75 |
|
|
100 |
|
|
23 |
|
|
136 |
|
|
507 |
|
Franchise and property expenses |
|
38 |
|
|
14 |
|
|
4 |
|
|
1 |
|
|
4 |
|
|
61 |
|
Franchise advertising and other services expense |
|
314 |
|
|
267 |
|
|
175 |
|
|
1 |
|
|
— |
|
|
757 |
|
Refranchising (gain) loss |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(12 |
) |
|
(12 |
) |
Other (income) expense |
|
18 |
|
|
(1 |
) |
|
(5 |
) |
|
— |
|
|
(22 |
) |
|
(10 |
) |
Company restaurant profit |
$ |
31 |
|
$ |
109 |
|
$ |
— |
|
$ |
12 |
|
$ |
— |
|
$ |
152 |
|
Company sales |
$ |
241 |
|
$ |
457 |
|
$ |
10 |
|
$ |
261 |
|
$ |
— |
|
$ |
969 |
|
Company restaurant margin % |
|
12.9 |
% |
|
23.9 |
% |
|
(4.4 |
)% |
|
4.5 |
% |
|
N/A |
|
|
15.7 |
% |
|
Year to date |
|||||||||||||||||
|
Division |
Division |
Division |
Habit
Division |
Corporate and Unallocated |
Consolidated |
||||||||||||
GAAP Operating Profit (Loss) |
$ |
618 |
|
$ |
376 |
|
$ |
205 |
|
$ |
5 |
|
$ |
(94 |
) |
$ |
1,110 |
|
Less: |
|
|
|
|
|
|
||||||||||||
Franchise and property revenues |
|
733 |
|
|
341 |
|
|
288 |
|
|
2 |
|
|
— |
|
|
1,364 |
|
Franchise contributions for advertising and other services |
|
294 |
|
|
248 |
|
|
186 |
|
|
— |
|
|
— |
|
|
728 |
|
Add: |
|
|
|
|
|
|
||||||||||||
General and administrative expenses |
|
153 |
|
|
64 |
|
|
83 |
|
|
23 |
|
|
113 |
|
|
436 |
|
Franchise and property expenses |
|
29 |
|
|
14 |
|
|
7 |
|
|
— |
|
|
— |
|
|
50 |
|
Franchise advertising and other services expense |
|
284 |
|
|
246 |
|
|
185 |
|
|
— |
|
|
— |
|
|
715 |
|
Refranchising (gain) loss |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(22 |
) |
|
(22 |
) |
Other (income) expense |
|
(6 |
) |
|
(3 |
) |
|
(4 |
) |
|
— |
|
|
3 |
|
|
(10 |
) |
Company restaurant profit |
$ |
51 |
|
$ |
108 |
|
$ |
2 |
|
$ |
26 |
|
$ |
— |
|
$ |
187 |
|
Company sales |
$ |
280 |
|
$ |
431 |
|
$ |
26 |
|
$ |
259 |
|
$ |
— |
|
$ |
996 |
|
Company restaurant margin % |
|
18.0 |
% |
|
25.0 |
% |
|
7.3 |
% |
|
10.3 |
% |
|
N/A |
|
|
18.7 |
% |
|
|
|
|
|
|
|
Segment Results (amounts in millions) (unaudited) |
|||||||||||||||||
Quarter Ended |
Division |
Division |
Division |
Habit
Division |
Corporate and Unallocated |
Consolidated |
|||||||||||
Total revenues |
$ |
677 |
$ |
586 |
|
$ |
235 |
|
$ |
138 |
|
$ |
— |
|
$ |
1,636 |
|
|
|
|
|
|
|
|
|||||||||||
Company restaurant expenses |
|
102 |
|
181 |
|
|
5 |
|
|
127 |
|
|
— |
|
|
415 |
|
General and administrative expenses |
|
89 |
|
39 |
|
|
50 |
|
|
11 |
|
|
65 |
|
|
254 |
|
Franchise and property expenses |
|
14 |
|
8 |
|
|
2 |
|
|
1 |
|
|
4 |
|
|
29 |
|
Franchise advertising and other services expense |
|
163 |
|
144 |
|
|
88 |
|
|
1 |
|
|
— |
|
|
396 |
|
Refranchising (gain) loss |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
(8 |
) |
|
(8 |
) |
Other (income) expense |
|
16 |
|
(1 |
) |
|
(3 |
) |
|
— |
|
|
(16 |
) |
|
(4 |
) |
Total costs and expenses, net |
|
384 |
|
371 |
|
|
142 |
|
|
140 |
|
|
45 |
|
|
1,082 |
|
Operating Profit (Loss) |
$ |
293 |
$ |
215 |
|
$ |
93 |
|
$ |
(2 |
) |
$ |
(45 |
) |
$ |
554 |
|
Quarter Ended |
Division |
Division |
Division |
Habit
Division |
Corporate and Unallocated |
Consolidated |
|||||||||||
Total revenues |
$ |
682 |
$ |
532 |
|
$ |
249 |
|
$ |
139 |
$ |
— |
|
$ |
1,602 |
|
|
|
|
|
|
|
|
|
|||||||||||
Company restaurant expenses |
|
118 |
|
165 |
|
|
11 |
|
|
123 |
|
— |
|
|
417 |
|
|
General and administrative expenses |
|
80 |
|
33 |
|
|
43 |
|
|
11 |
|
63 |
|
|
230 |
|
|
Franchise and property expenses |
|
15 |
|
7 |
|
|
5 |
|
|
— |
|
— |
|
|
27 |
|
|
Franchise advertising and other services expense |
|
151 |
|
130 |
|
|
91 |
|
|
— |
|
— |
|
|
372 |
|
|
Refranchising (gain) loss |
|
— |
|
— |
|
|
— |
|
|
— |
|
(7 |
) |
|
(7 |
) |
|
Other (income) expense |
|
— |
|
(1 |
) |
|
(4 |
) |
|
— |
|
1 |
|
|
(4 |
) |
|
Total costs and expenses, net |
|
364 |
|
334 |
|
|
146 |
|
|
134 |
|
57 |
|
|
1,035 |
|
|
Operating Profit (Loss) |
$ |
318 |
$ |
198 |
|
$ |
103 |
|
$ |
5 |
$ |
(57 |
) |
$ |
567 |
|
The above tables reconcile segment information, which is based on management responsibility, with our Condensed Consolidated Summary of Results. Corporate and unallocated expenses comprise items that are not allocated to segments for performance reporting purposes.
The Corporate and Unallocated column in the above tables includes, among other amounts, all amounts that we have deemed Special Items. See Reconciliation of Non-GAAP Measurements to GAAP Results.
Segment Results (amounts in millions) (unaudited) |
|||||||||||||||||
Year to Date |
Division |
Division |
Division |
Habit
Division |
Corporate and Unallocated |
Consolidated |
|||||||||||
Total revenues |
$ |
1,337 |
$ |
1,103 |
|
$ |
479 |
|
$ |
264 |
|
$ |
— |
|
$ |
3,183 |
|
|
|
|
|
|
|
|
|||||||||||
Company restaurant expenses |
|
210 |
|
348 |
|
|
10 |
|
|
249 |
|
|
— |
|
|
817 |
|
General and administrative expenses |
|
173 |
|
75 |
|
|
100 |
|
|
23 |
|
|
136 |
|
|
507 |
|
Franchise and property expenses |
|
38 |
|
14 |
|
|
4 |
|
|
1 |
|
|
4 |
|
|
61 |
|
Franchise advertising and other services expense |
|
314 |
|
267 |
|
|
175 |
|
|
1 |
|
|
— |
|
|
757 |
|
Refranchising (gain) loss |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
(12 |
) |
|
(12 |
) |
Other (income) expense |
|
18 |
|
(1 |
) |
|
(5 |
) |
|
— |
|
|
(22 |
) |
|
(10 |
) |
Total costs and expenses, net |
|
753 |
|
703 |
|
|
284 |
|
|
274 |
|
|
106 |
|
|
2,120 |
|
Operating Profit (Loss) |
$ |
584 |
$ |
400 |
|
$ |
195 |
|
$ |
(10 |
) |
$ |
(106 |
) |
$ |
1,063 |
|
Year to Date |
Division |
Division |
Division |
Habit
Division |
Corporate and Unallocated |
Consolidated |
|||||||||||
Total revenues |
$ |
1,307 |
|
$ |
1,020 |
|
$ |
500 |
|
|
261 |
$ |
— |
|
$ |
3,088 |
|
|
|
|
|
|
|
|
|||||||||||
Company restaurant expenses |
|
229 |
|
|
323 |
|
|
24 |
|
|
233 |
|
— |
|
|
809 |
|
General and administrative expenses |
|
153 |
|
|
64 |
|
|
83 |
|
|
23 |
|
113 |
|
|
436 |
|
Franchise and property expenses |
|
29 |
|
|
14 |
|
|
7 |
|
|
— |
|
— |
|
|
50 |
|
Franchise advertising and other services expense |
|
284 |
|
|
246 |
|
|
185 |
|
|
— |
|
— |
|
|
715 |
|
Refranchising (gain) loss |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
(22 |
) |
|
(22 |
) |
Other (income) expense |
|
(6 |
) |
|
(3 |
) |
|
(4 |
) |
|
— |
|
3 |
|
|
(10 |
) |
Total costs and expenses, net |
|
689 |
|
|
644 |
|
|
295 |
|
|
256 |
|
94 |
|
|
1,978 |
|
Operating Profit (Loss) |
$ |
618 |
|
$ |
376 |
|
$ |
205 |
|
$ |
5 |
$ |
(94 |
) |
$ |
1,110 |
|
The above tables reconcile segment information, which is based on management responsibility, with our Condensed Consolidated Summary of Results. Corporate and unallocated expenses comprise items that are not allocated to segments for performance reporting purposes.
The Corporate and Unallocated column in the above tables includes, among other amounts, all amounts that we have deemed Special Items. See Reconciliation of Non-GAAP Measurements to GAAP Results
Notes to the Condensed Consolidated Summary of Results, Condensed Consolidated Balance Sheets |
|
and Condensed Consolidated Statements of Cash Flows |
|
(amounts in millions) |
|
(unaudited) |
|
|
|
Amounts presented as of and for the quarters and years to date ended |
|
|
|
(a) |
Due to their size and volatility, we have reflected as Special Items those refranchising gains and losses that were recorded in connection with our previously announced plans to have at least |
|
|
|
During the quarters ended |
|
|
|
Additionally, we recorded net refranchising gains of |
|
|
(b) |
In the first quarter of 2022, as a result of the Russian invasion of |
|
|
|
Our GAAP operating results for the quarter and year to date ended |
|
|
(c) |
During the quarter and year to date ended |
|
|
(d) |
During the quarter ended |
|
|
|
During the quarter ended |
|
|
|
Due to their collective size and the fact that the amounts are not indicative of our ongoing interest expense, we reflected these charges as Special Items. |
|
|
(e) |
Tax (Expense) Benefit on Special Items was determined based upon the impact of the nature, as well as the jurisdiction of the respective individual components within Special Items. |
|
|
(f) |
During the quarter ended |
|
|
(g) |
In |
|
|
(h) |
Our decision to exit the |
Category: Earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20220802006189/en/
Analysts are invited to contact:
Members of the media are invited to contact:
Source:
FAQ
What were Yum! Brands' earnings per share for Q2 2022?
How did Taco Bell perform in Q2 2022?
What impact did exiting Russia have on Yum! Brands' unit count?
How much did Yum! Brands' digital sales reach in Q2 2022?