Yum! Brands: Reports Strong Q2-2019

Louisville / KY. (yb) Yum! Brands Inc. reported results for the second-quarter ended June 30, 2019. Worldwide system sales excluding foreign currency translation grew 10 percent, with 7 percent net-new units and 5 percent same-store sales growth. Second-quarter GAAP EPS was USD 0.92, a decrease of (5) percent. Second-quarter EPS excluding Special Items was USD 0.93, an increase of 15 percent.

Commentary

Greg Creed, CEO, said, «Second-quarter results maintained early year momentum and helped us to exceed our already high expectations for a strong first half of 2019. I’m especially pleased to report that we delivered 10 percent system sales growth in the quarter, supported by broad based strength at KFC International and Taco Bell. Our commitment to being a more focused, more franchised, and more efficient growth company positions us well for long-term success. Through the lens of our four growth drivers, we continue to leverage our unprecedented scale and expand our capabilities with the goal of enhancing franchise economics, accelerating growth and maximizing shareholder value.»

Second Quarter Highlights

• Worldwide system sales excluding foreign currency translation grew 10 percent, with KFC, Pizza Hut and Taco Bell each at 10 percent. Adjusting the prior year base to include Telepizza, system sales growth excluding foreign currency translation would have been 9 percent worldwide and 4 percent for the Pizza Hut Division.
• We opened 312 net units in the quarter. On a year-over-year basis, which takes into account the strategic alliance with Telepizza in the fourth-quarter 2018, net new unit growth was 7 percent.
• We repurchased 1.9 million shares totaling USD 196 million at an average price per share of USD 104.
• We reflected the change in fair value of our investment in Grubhub by recording pre-tax investment income of USD 24 million in the second quarter of 2019 and USD 25 million in the second quarter of 2018, which resulted in USD 0.06 in EPS during each respective quarter.
• Foreign currency translation unfavorably impacted divisional operating profit by USD 17 million.

For additional information please read Yum! Brands’s PDF file below (569 KB):

20190804-YUM-Q2-2019.