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Jun 30, 2020
Yum Q2 2020 Earnings Report
Yum Brands experienced a challenging quarter due to COVID-19, but demonstrated resilience through digital adaptation and operational adjustments.
Key Takeaways
Yum! Brands reported a decline in worldwide system sales by 12% and a same-store sales decline of 15%, offset by 3% net unit growth. Digital sales reached an all-time high of $3.5 billion. Approximately 95% of global system restaurants were at least partially open by the end of the quarter.
Worldwide system sales declined by 12% due to the impact of COVID-19.
Digital sales reached a record high of $3.5 billion, driven by increased online ordering and delivery.
Approximately 95% of the company's global restaurants were partially open by the end of the quarter.
Same-store sales trends for open stores stabilized in June, nearing flat despite dining room closures.
Yum
Yum
Yum Revenue by Segment
Revenue by Segment
KFC Division Revenue
CapyFin.comTaco Bell Division Revenue
CapyFin.comPizza Hut Division Revenue
CapyFin.com Forward Guidance
The report does not contain specific forward guidance. It expresses confidence in the company's ability to emerge as a stronger growth company.
Positive Outlook
- Brands adapted with agility.
- Leveraged consumer insights.
- Digitally enabled off-premise capabilities adjusted.
- Operations, menu options and marketing adjusted across the globe.
- Scale and capabilities driving profitable system sales growth.
Challenges Ahead
- Second-quarter results were meaningfully impacted by COVID-19.
- Worldwide system sales excluding foreign currency translation declined (12)%.
- Same-store sales decline of (15)%.
- Net units declined (118) during the quarter.
- Operating margin decreased.
Revenue & Expenses
Visualization of income flow from segment revenue to net income