Sep 30, 2023

Yum Q3 2023 Earnings Report

Yum! Brands reported strong Q3 2023 results, driven by system sales growth and unit expansion.

Key Takeaways

Yum! Brands reported a strong third quarter with 10% worldwide system sales growth, driven by 6% same-store sales growth and 6% unit growth. The company opened a record 1,130 gross new units. GAAP EPS was $1.46, and EPS excluding special items was $1.44.

Worldwide system sales grew 10%, excluding foreign currency translation, with KFC at 12%, Taco Bell at 11%, and Pizza Hut at 4%.

Unit count increased 6%, driven by 1,130 gross new units, a Q3 record.

Digital sales exceeded $7 billion, with digital mix over 45%.

GAAP operating profit grew 12% and core operating profit grew 16%.

Total Revenue
$1.71B
Previous year: $1.64B
+4.1%
EPS
$1.44
Previous year: $1.09
+32.1%
KFC Same Store Sales Growth
6%
Previous year: 7%
-14.3%
Taco Bell Same Store Sales Growth
8%
Previous year: 6%
+33.3%
Pizza Hut Same Store Sales Growth
1%
Previous year: 1%
+0.0%
Gross Profit
$860M
Previous year: $814M
+5.7%
Cash and Equivalents
$656M
Previous year: $410M
+60.0%
Free Cash Flow
$420M
Previous year: $392M
+7.1%
Total Assets
$6.07B
Previous year: $5.78B
+5.1%

Yum

Yum

Yum Revenue by Segment

Forward Guidance

Yum! Brands expects that its full-year 2023 results will outperform on all aspects of its long-term growth algorithm.

Positive Outlook

  • Strong year-to-date performance.
  • Sustaining top and bottom line momentum.
  • Exceptional performance of teams and franchisees.
  • Enhancements of customer insights platforms.
  • Expansions of global loyalty programs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income