In a press release dated October 28th Yum! Brands Inc. announced results for the 3rd quarter ending September 30th.
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 US$ x 1,000 except EPS)
|
3rd Quarter Ending September 30th
|
2021
|
2020
|
Difference (%)
|
|
Revenue:
|
$1,606,000
|
$1,448,000
|
+10.9
|
|
Gross profit company units:
|
$92,000
|
$87,000
|
+5.5
|
|
Operating income:
|
$527,000
|
$471,000
|
+11.9
|
|
Pre-tax Income
Net Income
|
$451,000
$528,0001
|
$346,000
$283,0002
|
+30.3
+86.5
|
|
Diluted earnings per share:
|
$1.75
|
$0.92
|
+90.2
|
|
Gross Margin company units (%)
|
17.9
|
17.9
|
0
|
|
Operating Margin (%)
|
32.8
|
32.5
|
+0.9
|
|
Profit Margin (%)
|
32.9
|
19.5
|
+68.7
|
|
Long-term Debt and lease obligations:
|
$12,919,000
|
$12,068,000
|
+7.1
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
22.2
|
|
|
|
Return on Equity (%)
|
N/A
|
|
|
|
Operating Margin (%)
|
34.1
|
|
|
|
Profit Margin (%)
|
34.1
|
|
|
|
Total Assets
|
$6,419,0003
|
$5,852,000
|
v +9.6
|
|
Market Capitalization
|
$38,860,000
|
|
|
Notes: 1. $77 million tax benefit. 2. $33 million tax payment
3. 33.1% intangibles and goodwill.
System wide: Sales +8.0%; Same-store sales growth 5%.
KFC Division: Sales $7,876 million; Operating margin 45.4%; Operating profit $101 million; 26,222 units.
Pizza Hut Division: Sales $3,170 million; Operating margin 40.6%; Operating profit $314 million; 18,007 units.
Taco Bell Division: Sales $3,143 million; Operating margin 34.6%; Operating profit $184 million; 7,619 units.
52-Week Range in Share Price: $92.22 to $135.77 50-day Moving average $125.58
Market close pre-release 27th October $125.80
Market open post-release 28th October $124.22
Forward P/E 25.5 Beta 1.0
In commenting on Q3 results, David Gibbs, CEO, said “Our third quarter results, led by record-breaking unit development and sustained momentum in digital sales, are a testament to the strength of our Brands and the unmatched commitment and capability of our best-in-class franchise partners. I am proud that each of our global divisions contributed to delivering 760 net-new units in the quarter. 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.
During the quarter, we advanced our digital capabilities with the acquisition of Dragontail and its AI-based integrated kitchen order management and delivery technologies that strengthens store operations, enhances the customer experience and makes it easier for team members to run a restaurant” He concluded, “As we continue to navigate the short-term uncertainties of the COVID recovery, we are incredibly confident in the ability of our iconic brands and our world-class talent to drive growth and maximize stakeholder value by delivering on our long-term growth algorithm.”