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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Yum! Brands Reports on Q4 and FY 2019

02/07/2020

In a press release dated February 6th Yum! Brands (YUM) announced results for the 4th Quarter and Fiscal 2019 ending December 31st 2020.

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

4th Quarter Ending December 31st

2019

2018

Difference (%)

Sales:

$1,694,000

$1,558,000

+8.7

Gross profit Company stores:

$105,000

$101,000

+4.0

Operating income:

$546,000

$741,0001

-26.3

Pre-tax Income

Net Income

$397,000

$488,000

$439,0002

$344,000

-9.6

41.9

Diluted earnings per share:

$1.58

$1.04

+51.9

Gross Margin Company stores (%)

21.2

21.4

-0.9

Operating Margin (%)

32.2

47.6

-32.5

Profit Margin (%)

28.8

22.1

+0.3

Long-term Debt:

$10,131,000

$9,751,000

+3.9

12 Months Trailing:

     

Return on Assets (%)

25.6

   

Return on Equity (%)

n/a

   

Operating Margin (%)

34.4

   

Profit Margin (%)

20.9

   

Total Assets

$5,231,0003

$4,130,0004

-27.9

Market Capitalization

$29,985,000

   

NOTES:

1. Includes $235 million refranchising revenue

2. Includes $176 million investment expenses

3. Includes $774 million goodwill and intangibles or 14.8 percent of assets

4. Includes $767 million goodwill and intangibles or 18.7 percent of assets

For FY 2019 YUM earned $12.94 billion on revenue of $5.60 billion with an EPS of $4.14. Corresponding values for FY 2018 were net earnings of $1.54 billion on revenue of $5,69 billion with an EPS of $4.69.

Foreign currency conversion detracted $46 million from net profit in FY 2019.

Same-store sales growth world-wide was 9 percent. With KFC at 10 percent; Taco Bell, 9 percent and Pizza Hut 8 percent KFC represented 43 percent of revenue and 52 percent of operating profit.

52-Week Range in Share Price: $92.02 to $119.72 50-day moving average $103.18

Market Close on Wed. 5th Feb. at $107.13. Close on Thur. 6 th Post-release at $103.67.

Forward P/E 22.4 Beta 0.3 Peg Ratio 1.74

In commenting on results David Gibbs, CEO, said “I am proud to announce that we completed our three-year transformation of Yum!, having achieved all of our transformation goals and evolved into a more focused, more franchised and more efficient business. 2019 was a truly historic year for our company. For the full-year, we generated over $50 billion in system sales and ended the year with over 50,000 restaurants. We delivered results consistent with our long-term growth algorithm with same-store sales growth of 3% and net-new unit growth of 4%. We began 2020 by announcing an agreement to add the Habit Burger Grill to the Yum! family. As we move into the next phase of growth for Yum!, we will continue to focus on our four key growth drivers with a collaborative mindset to fuel strong results for years to come.”

Chris Turner, CFO, concluded “Fourth-quarter results were a solid end to the year where we met or exceeded each component of our guidance, including full-year 2019 core operating profit growth, which was an increase of 12%, or 11% excluding the 53rd week. I'm especially pleased that we opened over 1,000 net new units in the fourth-quarter alone. We’ve emerged from our transformation a stronger company, and I look forward to accelerating the growth of our iconic brands, championing the customer experience and unlocking further value for our stakeholders.”


 
Copyright 2019 Simon M. Shane