NYSE$YUM

Yum Brands Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Yum! Brands reported solid Q4 2019 results, completing its strategic transformation and evolving into a more focused, franchised, and efficient business.

Yum! Brands reported a 10% worldwide system sales growth and a 2% same-store sales growth. The company opened 1,029 net new units and repurchased 3.2 million shares. GAAP EPS increased by 51% to $1.58, while EPS excluding special items increased 148% to $1.00.

  • Worldwide system sales excluding foreign currency translation grew 10%, with Taco Bell at 13%, KFC at 11% and Pizza Hut at 7%.
  • Opened 1,029 net units for 4% net unit growth.
  • Repurchased 3.2 million shares totaling $333 million at an average price per share of $103.
  • Recorded $21 million of pre-tax investment expense related to the change in fair value of investment in Grubhub, which resulted in a negative ($0.05) impact to EPS on the quarter.

Headline financials

Total Revenue

$1.69B

Previous: $1.56B+8.7%
EPS (adj)

$1.00

Previous: $0.40+150.0%
KFC same-store sales growth

3.0%

No prior period
KFC restaurant count

24.1K

No prior period
Taco Bell same-store sales growth

4.0%

No prior period
Taco Bell restaurant count

7.4K

No prior period
Pizza Hut same-store sales growth

0.0%

No prior period
Pizza Hut restaurant count

18.7K

No prior period
Capital Expenditures

$87M

Previous: $87M+0.0%
Free Cash Flow

$345M

Previous: $293M+17.7%
Net Income

$488M

Previous: $334M+46.1%
Operating Income

$546M

Previous: $741M-26.3%
Gross Profit

$826M

Previous: $747M+10.6%
Cash & Equivalents

$605M

Previous: $292M+107.2%
Total Assets

$5.23B

Previous: $4.13B+26.7%
Stock-Based Comp

$14M

Previous: $14M+0.0%

Revenue & EPS history

Yum · Revenue · Quarterly

$1.69B

Q4 2019+8.7%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Yum · $1.69B total across 3 segments · Q4 2019

  • KFC Division
    $732M
  • Taco Bell Division
    $665M
  • Pizza Hut Division
    $297M

Forward guidance

Yum! Brands announced an agreement to acquire The Habit Burger Grill, expecting the transaction to be completed by the end of the second quarter of 2020.

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 Q4 2019

Historical avgQ4 2019

-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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