Categories Earnings, Retail

Yum! Brands’ Q3 earnings miss expectations; revenues in-line

Yum! Brands Inc. (NYSE: YUM) reported third quarter 2019 revenues that matched expectations but profits missed estimates, sending the shares tumbling over 5% in premarket hours on Wednesday.

Total revenues of $1.34 billion was down 4% from the same period last year but were in line with consensus estimates of $1.34 billion.   

Yum! Brands reports Q3 2019 earnings results

GAAP net income fell over 40% to $255 million, or $0.81 per share, versus last year. Adjusted EPS fell 23% to $0.80, missing forecasts of $0.94.  

Worldwide system sales, excluding foreign currency translation, grew 8%, helped by single digit growth at KFC, Taco Bell and Pizza Hut. Same-store sales grew 3%. Same-store sales grew in the single-digit range at KFC and Taco Bell while at Pizza Hut, it remained flat. The company opened 389 net units in the quarter. Net-new unit growth was 7%.

In the Pizza Hut division, total revenues grew 5% to $241 million. Taco Bell revenues fell 5% to $489 million and KFC revenues dropped 6% to $609 million.  

Also read: Starbucks Q4 2019 Earnings Preview

During the quarter, the KFC division saw the highest growth of 20% in system sales in the Russia, Central and Eastern Europe market. This was followed by India, Latin America and Western Europe. KFC saw a 6% growth in restaurants on a global basis.

Pizza Hut saw the highest system sales growth of 86% in the Latin America/Spain/Portugal region, followed by a 33% growth in Africa. The segment reported a 9% growth in restaurants. The Taco Bell division reported a 4% growth in restaurants.

For fiscal year 2019, the company expects to achieve adjusted EPS of at least $3.75.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

2 thoughts on “Yum! Brands’ Q3 earnings miss expectations; revenues in-line

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top