Yum! Brands: Reports First-Quarter 2023 Results

Louisville / KY. (yb) Yum! Brands Inc. reported results for the first-quarter ending March 31, 2023. Worldwide system sales excluding foreign currency translation grew 13 percent excluding Russia impact, with 8 percent same-store sales growth and 5 percent unit growth. First-quarter GAAP operating profit grew 3 percent. First-quarter core operating profit grew 11 percent including a 1 percentage point headwind from Russia. First-quarter GAAP EPS was USD 1.05 and first-quarter EPS excluding Special Items was USD 1.06. First-quarter EPS includes a negative USD 0.07 mark-to-market impact from unrealized investment losses and a negative USD 0.08 impact from foreign currency translation.

CEO David Gibbs said «Our first-quarter results continue to illustrate the power of our global portfolio and the advantages of our business model. The demand for our iconic brands is evident as our incredible teams and franchise partners delivered another strong quarter with system sales growth of 13 percent excluding Russia, driven by 8 percent same-store sales growth and continued development momentum. We’re seeing broad-based accelerating digital sales growth leading to a record quarter for both digital system sales of nearly USD 7 billion and digital sales mix that exceeded 45 percent. I’m pleased to see the revenue flow through in the quarter translate to 11 percent core operating profit growth. We’re proud of the strong start to the year and confident we’ll continue to build on our position as the global franchisor of choice.»

Russia Update: On April 17, 2023, Yum! Brands completed its exit from the Russian market by selling its KFC business in Russia to Smart Service Limited, including all Russian KFC restaurants, operating system, master franchise rights and the trademark for the Rostik’s brand. With the completion of the transaction, Yum! has now ceased its corporate presence in Russia.

For additional information please read the company’s PDF file below (121 KB):