Yum! Brands Reports Third-Quarter Results
Taco Bell
Digital Sales Mix Exceeding
DAVID GIBBS COMMENTS
David Gibbs, CEO, said “I'm incredibly proud of how our teams have navigated such a complex consumer environment to deliver
THIRD-QUARTER HIGHLIGHTS
-
Worldwide system sales grew
1% , excluding foreign currency translation, with KFC at1% , Taco Bell at5% , and Pizza Hut (1)%. -
Unit count increased
5% including 1,029 gross new units in the quarter. -
Robust digital system sales exceeding
, with digital mix over$8 billion 50% . -
GAAP operating profit grew
1% and core operating profit grew3% . -
Foreign currency translation unfavorably impacted divisional operating profit by
.$3 million
Reported Results |
% Change |
||||
|
System Sales Ex F/X |
Same-Store Sales |
Units |
GAAP Operating
|
Core Operating Profit1 |
KFC Division |
+1 |
(4) |
+7 |
(2) |
(1) |
Taco Bell Division |
+5 |
+4 |
+2 |
+11 |
+11 |
Pizza Hut Division |
(1) |
(4) |
+2 |
(6) |
(5) |
Worldwide |
+1 |
(2) |
+5 |
+1 |
+3 |
|
Third-Quarter |
Year-to-Date |
||||
|
2024 |
2023 |
% Change |
2024 |
2023 |
% Change |
GAAP EPS |
|
|
(8) |
|
|
(6) |
Less Special Items EPS1 |
|
|
NM |
|
|
NM |
EPS Excluding Special Items |
|
|
(5) |
|
|
(1) |
1 See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Core Operating Profit and Special Items. |
|
All comparisons are versus the same period a year ago. |
|
System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further details. |
|
Digital system sales includes all transactions at system restaurants where consumers utilize ordering interaction that is primarily facilitated by automated technology. |
KFC DIVISION
|
Third-Quarter |
Year-to-Date |
||||||
|
|
|
%/ppts Change |
|
|
%/ppts Change |
||
|
2024 |
2023 |
Reported |
Ex F/X |
2024 |
2023 |
Reported |
Ex F/X |
Restaurants |
31,143 |
29,051 |
+7 |
N/A |
31,143 |
29,051 |
+7 |
N/A |
System Sales ($MM) |
8,669 |
8,620 |
+1 |
+1 |
25,023 |
24,975 |
Even |
+2 |
Same-Store Sales Growth (%) |
(4) |
+6 |
NM |
NM |
(3) |
+9 |
NM |
NM |
Franchise and Property Revenues ($MM) |
417 |
426 |
(2) |
(2) |
1,219 |
1,254 |
(3) |
(1) |
Operating Profit ($MM) |
339 |
344 |
(2) |
(1) |
986 |
975 |
+1 |
+3 |
Operating Margin (%) |
43.1 |
49.2 |
(6.1) |
(5.9) |
46.2 |
47.1 |
(0.9) |
(0.4) |
|
Third-Quarter (% Change) |
Year-to-Date (% Change) |
||
|
International |
|
International |
|
System Sales Growth Ex F/X |
+2 |
(7) |
+4 |
(7) |
Same-Store Sales Growth |
(3) |
(5) |
(3) |
(6) |
- KFC Division opened 685 gross new restaurants across 65 countries.
-
Company-owned restaurant margins were
12.5% , including the newly acquiredU.K. stores for the full quarter. -
Foreign currency translation unfavorably impacted operating profit by
.$1 million
KFC Markets1 |
Percent of KFC
|
System Sales Growth Ex F/X |
|
Third-Quarter (% Change) |
Year-to-Date (% Change) |
||
|
|
+5 |
+6 |
|
|
(7) |
(7) |
|
|
+6 |
+8 |
|
|
(6) |
(7) |
|
|
+2 |
+3 |
|
|
+8 |
+16 |
|
|
(6) |
(3) |
|
|
(10) |
(9) |
|
|
+10 |
+10 |
|
|
+6 |
+7 |
|
|
+3 |
+3 |
|
|
+7 |
+9 |
1Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets. |
2Reflects Full Year 2023. |
TACO BELL DIVISION
|
Third-Quarter |
Year-to-Date |
||||||
|
|
|
%/ppts Change |
|
|
%/ppts Change |
||
|
2024 |
2023 |
Reported |
Ex F/X |
2024 |
2023 |
Reported |
Ex F/X |
Restaurants |
8,594 |
8,385 |
+2 |
N/A |
8,594 |
8,385 |
+2 |
N/A |
System Sales ($MM) |
4,008 |
3,804 |
+5 |
+5 |
11,622 |
11,028 |
+5 |
+5 |
Same-Store Sales Growth (%) |
+4 |
+8 |
NM |
NM |
+3 |
+7 |
NM |
NM |
Franchise and Property Revenues ($MM) |
234 |
218 |
+7 |
+7 |
678 |
637 |
+6 |
+6 |
Operating Profit ($MM) |
251 |
226 |
+11 |
+11 |
709 |
658 |
+8 |
+8 |
Operating Margin (%) |
37.6 |
36.0 |
1.6 |
1.6 |
36.7 |
36.1 |
0.6 |
0.6 |
- Taco Bell Division opened 49 gross new restaurants across 15 countries.
-
Taco Bell
U.S. system sales grew5% and Taco Bell International system sales excluding foreign currency translation, grew6% . -
Taco Bell
U.S. and Taco Bell International same-store sales grew4% and1% , respectively. -
Company-owned restaurant margins were
23.4% , down slightly year-over-year.
PIZZA HUT DIVISION
|
Third-Quarter |
Year-to-Date |
||||||
|
|
|
%/ppts Change |
|
|
%/ppts Change |
||
|
2024 |
2023 |
Reported |
Ex F/X |
2024 |
2023 |
Reported |
Ex F/X |
Restaurants |
19,927 |
19,469 |
+2 |
N/A |
19,927 |
19,469 |
+2 |
N/A |
System Sales ($MM) |
3,184 |
3,243 |
(2) |
(1) |
9,491 |
9,780 |
(3) |
(2) |
Same-Store Sales Growth (%) |
(4) |
+1 |
NM |
NM |
(5) |
+4 |
NM |
NM |
Franchise and Property Revenues ($MM) |
150 |
150 |
Even |
+1 |
446 |
454 |
(2) |
(1) |
Operating Profit ($MM) |
91 |
97 |
(6) |
(5) |
278 |
292 |
(5) |
(3) |
Operating Margin (%) |
38.3 |
40.3 |
(2.0) |
(1.6) |
38.9 |
39.6 |
(0.7) |
(0.3) |
|
Third-Quarter (% Change) |
Year-to-Date (% Change) |
||
|
International |
|
International |
|
System Sales Growth Ex F/X |
(3) |
(1) |
(2) |
(2) |
Same-Store Sales Growth |
(6) |
(1) |
(6) |
(3) |
- Pizza Hut Division opened 292 gross new restaurants across 36 countries.
-
Foreign currency translation unfavorably impacted operating profit by
.$2 million
Pizza Hut Markets1 |
Percent of Pizza Hut
|
System Sales Growth Ex F/X |
|
Third-Quarter (% Change) |
Year-to-Date (% Change) |
||
|
|
(1) |
(2) |
|
|
(2) |
+2 |
|
|
(3) |
(4) |
|
|
(7) |
(6) |
|
|
Even |
+1 |
|
|
(4) |
(6) |
|
|
+2 |
+4 |
|
|
+3 |
+2 |
1Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets. |
2Reflects Full Year 2023. |
HABIT BURGER & GRILL DIVISION
- Habit Burger & Grill Division opened 3 gross new restaurants.
-
Habit Burger & Grill Division system sales declined
1% with same-store sales declining5% .
OTHER ITEMS
- See reconciliation of Non-GAAP Measurements to GAAP results within this release for further detail of Special Items by financial statement line item including the impact of Special Items on General and administrative expenses.
- Disclosures pertaining to outstanding debt in our Restricted Group capital structure will be provided at the time of the filing of the third-quarter Form 10-Q.
CONFERENCE CALL
Yum! Brands, Inc. will host a conference call to review the company's financial performance and strategies at 7:45 a.m. Eastern Time November 5, 2024. The number is 404/975-4839 for
The call will be available for playback beginning at 10:00 a.m. Eastern Time November 5, 2024 through November 12, 2024. To access the playback, dial 866/813-9403 in the
The webcast and the playback can be accessed by visiting Yum! Brands' website, investors.yum.com/events-and-presentations and selecting “Q3 2024 Yum! Brands, Inc. Earnings Call.”
ADDITIONAL INFORMATION ONLINE
Quarter-end dates for each division, restaurant count details, definitions of terms and Restricted Group financial information are available at investors.yum.com. Reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures are included in our Condensed Consolidated Summary of Results.
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 Yum! Brands, will prove to be correct or that any of our expectations, estimates or projections will be achieved.
Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: food safety and food- or beverage-borne illness concerns; adverse impacts of health epidemics, deterioration in public health conditions or the occurrence of other catastrophic or unforeseen events; the success and financial stability of our concepts’ franchisees, particularly in light of challenging macroeconomic conditions; the success of our development strategy; anticipated benefits from past or potential future acquisitions, investments, other strategic transactions or initiatives, or our portfolio business model; our significant exposure to the Chinese market; our global operations and related exposure to geopolitical instability, including 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 Securities and Exchange Commission (including the information set forth under the captions “Risk Factors” and “Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q) for additional detail about factors that could affect our financial and other results.
Yum! Brands, Inc., based in
Category: Earnings
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Source: Yum! Brands, Inc.