News

Yum Brands reports 5 percent global sales growth, though Pizza Hut flat

October 31, 2018

Yum! Brands, Inc. Q3 results today for the period ending Sept. 30, showing Q3 GAAP earning per share were up 18 percent to $1.40, while Q3 EPS excluding special items was up 52 percent to $1.04, a news release saiad. 

Other key third-quarter highlights include:

• 5 percent worldwide system sales growth including flat sales at Pizza Hut, but growth of 8 percent at Taco Bell and 7 percent at KFC. 
• 4 percent net new unit growth with 410 net new units. 
• 134 restaurants refranchised, including 57 at KFC, 31 at Pizza Hut and 46 at Taco Bell units, for $193 million pre-tax. 
• 97 percent global franchise ownership. 
• 6.3 million shares repurchased at $83 average for total of $527 million.
• $94 million of pre-tax investment income recorded from change in fair value of Grubhub investment, resulting in $0.22 in EPS.
• Refranchising gains of $100 million in special items. 

"We are pleased to deliver third-quarter system sales growth of 5 percent, consisting of same store sales growth of 2 percent and net new unit growth of 4 percent," Yum Brands CEO Greg Creed said in the release. "Core operating profit growth of 2 percent was consistent with our expectations. 

"We are now two years into our three-year transformation and remain firmly on-track to becoming more focused, more franchised and more efficient. The collective power of our three iconic brands, anchored by our four key growth drivers, is helping us deliver long-term sustainable growth and higher returns for our stakeholders."