Yum Q1 2020 Earnings Report
Key Takeaways
Yum! Brands reported a decline in worldwide system sales excluding foreign currency translation by 3%, with a 7% decrease in same-store sales. However, the company achieved 4% net-new unit growth, including the acquisition of Habit Burger Grill. First-quarter GAAP EPS was $0.27, a decrease of 68%, and EPS excluding Special Items was $0.64, a decrease of 23%.
Worldwide system sales excluding foreign currency translation declined by 3%, with KFC at (2)% and Pizza Hut at (9)%, offset by Taco Bell at 4%.
The company opened 65 net units and acquired 276 Habit Burger Grill units, resulting in 4% net unit growth.
A pre-tax investment expense of $22 million related to the change in fair value of the investment in Grubhub negatively impacted EPS by ($0.06).
The company recorded an after-tax impairment charge related to the goodwill arising from the preliminary purchase price allocation associated with the Habit acquisition of $107 million.
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Forward Guidance
The company did not provide specific forward guidance in this earnings report.
Revenue & Expenses
Visualization of income flow from segment revenue to net income