NYSE$YUM

Yum Brands Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Yum! Brands experienced a decline in system sales and same-store sales due to the impact of COVID-19, while managing to achieve net-new unit growth.

Yum! Brands reported a decline in worldwide system sales excluding foreign currency translation by 3%, with a 7% decrease in same-store sales. However, the company achieved 4% net-new unit growth, including the acquisition of Habit Burger Grill. First-quarter GAAP EPS was $0.27, a decrease of 68%, and EPS excluding Special Items was $0.64, a decrease of 23%.

  • Worldwide system sales excluding foreign currency translation declined by 3%, with KFC at (2)% and Pizza Hut at (9)%, offset by Taco Bell at 4%.
  • The company opened 65 net units and acquired 276 Habit Burger Grill units, resulting in 4% net unit growth.
  • A pre-tax investment expense of $22 million related to the change in fair value of the investment in Grubhub negatively impacted EPS by ($0.06).
  • The company recorded an after-tax impairment charge related to the goodwill arising from the preliminary purchase price allocation associated with the Habit acquisition of $107 million.

Headline financials

Total Revenue

$1.26B

Previous: $1.25B+0.7%
EPS (adj)

$0.64

Previous: $0.82-22.0%
KFC same-store sales growth

-8.0%

No prior period
KFC restaurant count

24.3K

No prior period
Taco Bell same-store sales growth

1.0%

No prior period
Taco Bell restaurant count

7.4K

No prior period
Pizza Hut same-store sales growth

-11.0%

No prior period
Pizza Hut restaurant count

18.5K

No prior period
Capital Expenditures

-$35M

Previous: -$44M+20.5%
Free Cash Flow

$48M

Previous: $218M-78.0%
Net Income

$83M

Previous: $262M-68.3%
Operating Income

$250M

Previous: $433M-42.3%
Gross Profit

$965M

Previous: $982M-1.7%
Cash & Equivalents

$1.15B

Previous: $278M+315.1%
Total Assets

$6.09B

Previous: $4.74B+28.3%
Stock-Based Comp

$18M

Previous: $17M+5.9%

Revenue & EPS history

Yum · Revenue · Quarterly

$1.26B

Q1 2020+0.7%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Yum · $1.25B total across 3 segments · Q1 2020

  • KFC Division
    $566M
  • Taco Bell Division
    $453M
  • Pizza Hut Division
    $235M

Forward guidance

The company did not provide specific forward guidance in this earnings report.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.0%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.5%

Avg return

30 days after

54%

39 / 72 earnings

Positive

+9.7%

Q4 2024

Best reaction

-18.5%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.4%-1.3%-5.5%
Q4 2025+0.5%+0.1%+0.8%
Q3 2025+7.5%+7.0%+4.6%
Q2 2025+0.9%+0.5%+2.3%
Q1 2025+1.9%-0.8%-2.5%
Q4 2024+9.7%+11.7%+23.8%
Q3 2024+1.2%+3.4%+4.0%
Q2 2024+2.3%+2.6%+0.9%
Q1 2024-4.4%-3.6%-2.7%
Q4 2023+2.5%+3.2%+9.7%
Q3 2023+2.8%+4.6%+5.4%
Q2 2023-0.5%-0.9%-4.9%
Q1 2023-4.6%-4.5%-5.9%
Q4 2022+1.4%+2.5%-3.7%
Q3 2022+1.1%+3.7%+9.8%
Q2 2022-1.7%-3.0%-7.7%
Q1 2022+0.5%-4.3%+3.1%
Q4 2021-0.7%-2.9%-7.0%
Q3 2021-0.7%-1.1%-1.3%
Q2 2021+7.2%+8.8%+7.4%
Q1 2021+2.1%+3.1%+3.1%
Q4 2020+0.6%-1.5%-0.4%
Q3 2020-1.8%+1.8%+12.7%
Q2 2020-4.0%-3.2%+2.8%
Q1 2020-2.1%-5.9%+1.7%
Q4 2019-4.4%-2.6%-16.3%
Q3 2019-7.3%-10.3%-8.2%
Q2 2019+4.3%+3.1%+3.8%
Q1 2019-2.5%-1.9%-2.0%
Q4 2018-0.1%-0.6%+2.2%
Q3 2018+1.8%+1.2%+6.7%
Q2 2018+3.0%+2.3%+9.3%
Q1 2018-4.6%-4.1%-5.5%
Q4 2017-1.0%-2.9%+3.5%
Q3 2017+6.2%+9.0%+12.2%
Q2 2017-2.1%-3.2%+0.0%
Q1 2017+4.0%+4.2%+11.5%
Q4 2016+2.1%+3.0%-3.4%
Q3 2016-3.2%-3.2%-7.8%
Q2 2016+2.4%+1.6%+4.3%
Q1 2016-0.5%
Q4 2015-0.0%
Q3 2015-18.5%
Q2 2015-2.4%
Q1 2015+3.6%
Q4 2014+2.2%
Q3 2014-0.9%
Q2 2014-7.4%
Q1 2014+1.0%
Q4 2013+7.3%
Q3 2013-6.9%
Q2 2013-2.0%
Q1 2013+5.2%
Q4 2012-5.8%
Q3 2012+6.1%
Q2 2012+2.3%
Q1 2012+1.4%
Q4 2011+1.0%
Q3 2011+0.2%
Q2 2011-0.9%
Q1 2011+0.5%
Q4 2010+1.7%
Q3 2010+0.8%
Q2 2010-0.3%
Q1 2009+0.2%
Q1 2010+0.5%
Q2 2009+0.2%
Q4 2009+0.2%
Q4 2007-1.5%
Q3 2008-1.5%
Q3 2009-1.5%
Q4 2008-1.5%

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