Yum! Brands (YUM) Tops Q3 EPS by 1c; Maintains Outlook

Yum! Brands (NYSE: YUM) reported Q3 EPS of $0.68, $0.01 better than the analyst estimate of $0.67. Revenue for the quarter came in at $1.44 billion versus the consensus estimate of $1.39 billion.

THIRD-QUARTER HIGHLIGHTS

• Worldwide system sales grew 6%, with KFC at 7%, Taco Bell at 6% and Pizza Hut at 3%.
• We opened 362 net new units for 3% net unit growth.
• We refranchised 209 restaurants, including 72 KFC, 46 Pizza Hut and 91 Taco Bell units, for gross proceeds of $395 million. We recorded net refranchising gains of $201 million in Special Items. As of quarter end, our global franchise ownership mix increased to 95%.
• We repurchased 6.6 million shares totaling $501 million at an average price of $75.
• Foreign currency translation favorably impacted divisional operating profit by $2 million.

Maintains Full-Year Core Operating Profit Growth Guidance.

Greg Creed, CEO, said “I’m pleased to report another strong quarter with 11% core operating profit growth and 22% EPS growth excluding special items, as a result of the continued focus on our four key growth drivers. We are maintaining our full-year 2017 guidance and remain on-track with our multi-year transformation strategy. As we celebrate both our 1st anniversary from the spinoff of Yum China and our 20th anniversary as an independent company, I am proud of our accomplishments. I’m especially proud of our ability to leverage our culture to rapidly transform to a more focused, more franchised and more efficient company which delivers more growth to our shareholders.”

For earnings history and earnings-related data on Yum! Brands (YUM) click here.

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