Yum Brands tops Q3 adjusted EPS estimates

Yum! Brands

Tue 12:12

Overview
Global restaurant operator's Q3 adjusted EPS beat analyst expectations
KFC unit count grew 7% in Q3
Company completed Pizza Hut divestiture and returned $1.8 bln to shareholders year-to-date

Outlook
Yum Brands targets 5% unit growth over the long term
Company aims for 7% system sales growth, excluding F/X, over an extended period
Yum Brands expects at least 8% core operating profit growth, excluding F/X, long term

Result Drivers
KFC UNIT EXPANSION - KFC division drove results with 7% unit growth; unit gross opened 878 new restaurants across 66 countries
DIGITAL SALES GROWTH - Digital system sales reached $9 bln, accounting for 64% of total sales
TACO BELL - Excluding forex effects, Taco Bell International system sales rose 14% and same-store sales grew 5%, but US same-store sales fell 4%

Company press release: ID:nBw8TNX1Ra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Beat
$1.56
$1.49 (21 Analysts)
Q3 EPS
 
$5.92
 
Q3 KFC Operating Margin
 
44.80%
 
Q3 KFC Operating Profit
 
$425 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 15 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for Yum! Brands, Inc. is $171.70, about 8.9% above its November 2 closing price of $157.60
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads
Nov 3 - China's Yum China Q3 revenue rises on store expansion
Nov 2 - Pizza Hut, KFC India operator's Q2 loss narrows sharply on strong same-store sales growth
Nov 2 - Canada's Pizza Pizza Royalty Q3 same store sales fall on weak consumer spending

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)