NYSE$YUM

Yum Brands Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Yum! Brands reported encouraging results driven by record digital sales, off-premise growth, and restaurant reopenings.

Yum! Brands reported encouraging third-quarter results with core operating profit growth and achieved global same-store sales growth of approximately flat for the open store base. Digital sales increased significantly, and the company disposed of its Grubhub investment.

  • Worldwide system sales excluding foreign currency translation grew 1%, with Taco Bell at 5%, offset by KFC at (1)% and Pizza Hut at (4)%.
  • Reported 2% net unit growth year-over-year and a unit decline of (267) during the quarter.
  • Recorded $8 million of pre-tax investment income related to the change in fair value of our investment in Grubhub, which resulted in a $0.02 benefit to EPS on the third-quarter.
  • Disposed our Grubhub investment during the third-quarter for $206 million.

Headline financials

Total Revenue

$1.45B

Previous: $1.34B+8.1%
EPS (adj)

$1.01

Previous: $0.80+26.2%
KFC same-store sales growth

-4.0%

No prior period
KFC restaurant count

24.6K

No prior period
Taco Bell same-store sales growth

3.0%

No prior period
Taco Bell restaurant count

7.4K

No prior period
Pizza Hut same-store sales growth

-3.0%

No prior period
Pizza Hut restaurant count

17.8K

No prior period
Capital Expenditures

-$99M

Previous: -$109M+9.2%
Free Cash Flow

$184M

Previous: $146M+26.0%
Net Income

$283M

Previous: $255M+11.0%
Operating Income

$471M

Previous: $480M-1.9%
Gross Profit

$1.05B

Previous: $1.05B+0.2%
Cash & Equivalents

$1.11B

Previous: $691M+60.6%
Total Assets

$6.06B

Previous: $5B+21.1%
Stock-Based Comp

$15M

Previous: $14M+7.1%

Revenue & EPS history

Yum · Revenue · Quarterly

$1.45B

Q3 2020+8.1%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Yum · $1.33B total across 3 segments · Q3 2020

  • KFC Division
    $586M
  • Taco Bell Division
    $501M
  • Pizza Hut Division
    $243M

Forward guidance

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.

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 Q3 2020

Historical avgQ3 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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