01—Abstract
Summary
Summary of the 8-K filed November 5, 2024. Cited figures are marked; the original filing is the authoritative source.
Yum!
Brands, Inc. reported third-quarter 2024 results for the quarter ended September 30, 2024. Worldwide system sales excluding foreign currency translation grew 1%a, with unit count up 5% and 1,029 gross new units opened in the quarter. GAAP operating profit grew 1% and core operating profit grew 3%.
GAAP diluted EPS was $1.35b, compared with $1.46 a year earlier, and EPS excluding Special Items was $1.37, compared with $1.44. The company said EPS excluding Special Items reflected a $0.14 negative impact from a higher current-year tax rate and lower investment income year over year. By division, Taco Bell U.S. same-store sales grew 4% and Taco Bell Division system sales grew 5%.
KFC Division system sales grew 1% on a reported basis, with same-store sales down 4% and 685 gross new restaurants opened. Pizza Hut Division system sales declined 2% on a reported basis, with same-store sales down 4%. Digital system sales exceeded $8 billionc, and digital mix was over 50%.
Net income for the quarter was $382 milliond, compared with $416 million a year earlier. Year-to-date cash provided by operating activities was $1,176 million, and year-to-date share repurchases were $327 million. The filing states that disclosures on outstanding debt in the Restricted Group capital structure will be provided with the third-quarter Form 10-Q.
The results are preliminary and unaudited. The company also held a conference call on November 5, 2024 to review its performance and strategy.
02—Key points
Key Highlights
- Worldwide system sales grew 1% excluding foreign currency translation, with KFC at 1%, Taco Bell at 5% and Pizza Hut at (1)%.
- GAAP operating profit grew 1% and core operating profit grew 3%; foreign currency translation unfavorably impacted divisional operating profit by $3 million.
- GAAP diluted EPS was $1.35 versus $1.46 a year ago; EPS excluding Special Items was $1.37 versus $1.44.
- Total revenues were $1.83 billion for the quarter versus $1.71 billion a year earlier, and net income was $382 million versus $416 million.
- Taco Bell U.S. same-store sales grew 4%, while KFC and Pizza Hut same-store sales each declined 4% on a reported basis.
- The company opened 1,029 gross new units in the quarter, and total unit count increased 5%; KFC International unit growth was 9%.
- Digital system sales exceeded $8 billion, with digital mix over 50%; disclosures on Restricted Group debt are deferred to the third-quarter Form 10-Q.
03—Questions
Frequently Asked Questions
How did Yum! Brands perform in the third quarter of 2024?
Worldwide system sales excluding foreign currency translation grew 1% on 5% unit growth. GAAP operating profit grew 1% and core operating profit grew 3%. GAAP diluted EPS was $1.35, down from $1.46 a year earlier.
Why did EPS excluding Special Items decline?
The filing states that third-quarter EPS excluding Special Items of $1.37 reflected a $0.14 negative impact from a higher current-year tax rate and lower investment income year over year.
How did the individual brands perform?
Taco Bell Division system sales grew 5% with same-store sales up 4% in the U.S. KFC Division system sales grew 1% with same-store sales down 4%. Pizza Hut Division system sales fell 2% on a reported basis with same-store sales down 4%.
Will the company disclose more about its debt?
The filing states that disclosures pertaining to outstanding debt in the Restricted Group capital structure will be provided at the time of the filing of the third-quarter Form 10-Q.
04—Continue