Yum! Brands Q3 Earnings Beat Estimates Fed By KFC, Taco Bell Contribution

Yum! Brands Inc YUM reported third-quarter FY21 revenue growth of 11% year-on-year, to $1.61 billion, beating the analyst consensus of $1.59 billion.
Total revenues from the KFC division rose 18% to $692 million, Pizza Hut improved 2% to $247 million, and the Taco Bell division rose 6% to $534 million.
Same-store sales for the quarter grew 5%. Same-store sales at KFC Division increased 6%, and Pizza Hut rose 4%.
Worldwide system sales excluding foreign currency translation grew 8%, with KFC at 11%, Taco Bell at 8%, and Pizza Hut at 4%.
"Our 5% same store sales growth for the third quarter, or 3% same-store sales growth on a 2-year basis, demonstrates the resilience of our diversified global business model despite the headwind of the Delta variant in certain key markets," said CEO David Gibbs.
Franchise and property revenues increased 12% to $716 million, and Company sales rose 5% Y/Y to $513 million. Revenue from Franchise contributions for advertising and other services improved 17% to $377 million.
Total costs and expenses increased 10% Y/Y to $1.1 billion. The operating margin was 32.8%, and operating income for the quarter rose 12% to $527 million.
The company held $1 billion in cash and equivalents as of September 30, 2021. Net cash provided by operating activities totaled $1.3 billion.
Adjusted EPS of $1.22 beat the analyst consensus of $1.08.
Price Action: YUM shares are trading lower by 0.33% at $125.39 on the last check Thursday.

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