Dec 31, 2019

Yum Q4 2019 Earnings Report

Yum! Brands reported solid Q4 2019 results, completing its strategic transformation and evolving into a more focused, franchised, and efficient business.

Key Takeaways

Yum! Brands reported a 10% worldwide system sales growth and a 2% same-store sales growth. The company opened 1,029 net new units and repurchased 3.2 million shares. GAAP EPS increased by 51% to $1.58, while EPS excluding special items increased 148% to $1.00.

Worldwide system sales excluding foreign currency translation grew 10%, with Taco Bell at 13%, KFC at 11% and Pizza Hut at 7%.

Opened 1,029 net units for 4% net unit growth.

Repurchased 3.2 million shares totaling $333 million at an average price per share of $103.

Recorded $21 million of pre-tax investment expense related to the change in fair value of investment in Grubhub, which resulted in a negative ($0.05) impact to EPS on the quarter.

Total Revenue
$1.69B
Previous year: $1.56B
+8.7%
EPS
$1
Previous year: $0.4
+150.0%
KFC Same Store Sales Growth
3%
Taco Bell Same Store Sales Growth
4%
KFC Unit Count
24.1K
Gross Profit
$826M
Previous year: $747M
+10.6%
Cash and Equivalents
$605M
Previous year: $292M
+107.2%
Free Cash Flow
$345M
Previous year: $293M
+17.7%
Total Assets
$5.23B
Previous year: $4.13B
+26.7%

Yum

Yum

Yum Revenue by Segment

Forward Guidance

Yum! Brands announced an agreement to acquire The Habit Burger Grill, expecting the transaction to be completed by the end of the second quarter of 2020.

Revenue & Expenses

Visualization of income flow from segment revenue to net income