Louisville / KY. (yb) Yum! Brands Inc. reported results for the third quarter ended September 30, 2018. Third-quarter GAAP EPS was USD 1.40, an increase of 18 percent. Third-quarter EPS excluding Special Items was USD 1.04, an increase of 52 percent.
Chief Executive’s Comment
CEO Greg Creed: «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. 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».
Third-Quarter Highlights
- Worldwide system sales excluding foreign currency translation grew 5 percent, with Taco Bell at 8 percent, KFC at 7 percent, and Pizza Hut flat.
- We opened 410 net new units for 4 percent net new unit growth.
- We refranchised 134 restaurants, including 57 KFC, 31 Pizza Hut and 46 Taco Bell units, for pre-tax proceeds of USD 193 million. We recorded net refranchising gains of USD 100 million in Special Items. As of quarter end, our global franchise ownership mix was 97 percent.
- We repurchased 6.3 million shares totalling USD 527 million at an average price of USD 83.
- We reflected the change in fair value of our investment in Grubhub by recording USD 94 million of pre-tax investment income, resulting in USD 0.22 in EPS.
- Foreign currency translation unfavourably impacted divisional operating profit by USD 9 million.
For additional information please read Yum! Brands’s PDF file below (564 KB).
20181102-KELLOGG-Q3-2018.