Yum! Brands Q4 Results Top Estimates

(RTTNews) - Yum! Brands Inc.(YUM) Thursday reported a profit for the fourth-quarter that declined 32 percent from last year. But quarterly revenues rose 3 percent from the prior year. Same-store sales decreased 1 percent.

Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

David Gibbs, CEO, said "Yum! enters 2021 a stronger company primed to profitably grow system sales this year and beyond."

Yum! Brands' fourth-quarter net income dropped 32 percent to $332 million or $1.08 per share from $488 million or $1.58 per share in the prior year.

Earnings per share, excluding special items, for the fourth-quarter was $1.15 compared to $1.00 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.01 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

Total costs and expenses increased to $1.26 billion from $1.15 billion in the previous year.

Total revenues for the fourth-quarter grew 3 percent to $1.74 billion from $1.69 billion last year. Analysts expected revenue of $1.72 billion for the quarter.

Overall system sales for the fourth-quarter declined 2 percent, including a 3 percent headwind of the 53rd week in 2019, with slightly positive net units year-over-year and a 1 percent same-store sales decline.

Excluding foreign currency translation, quarterly worldwide system sales declined 2 percent. System sales at KFC were down 1 percent, Taco Bell down 3 percent, and Pizza Hut down 6 percent.

KFC Division opened 587 gross new restaurants during the quarter. Foreign currency translation favorably impacted operating profit by $4 million for the quarter.

Pizza Hut Division opened 337 gross new restaurants and closed 540 restaurants during the quarter. Pizza Hut U.S. off-premise channel generated 21 percent same-store sales growth when excluding closed Express units or 18 percent same-store sales growth when including closed Express units.

Taco Bell Division opened 93 gross new restaurants during the quarter. Operating margin increased 0.1 percentage points for the quarter and 1.5 percentage points for the year primarily driven by lower general and administrative expenses and higher company restaurant margins.

During the quarter, the Habit Burger Grill Division same-store sales declined 5 percent.

In Thursday pre-market trade, YUM was trading at $107.81 up $3.08 or 2.94 percent.