Yum!(US:YUM)2025-11-04 12:01Financial Performance - Third-quarter GAAP EPS was $1.41, and EPS excluding Special Items was $1.58, representing a 15% year-over-year increase [2]. - Company sales for Q3 2025 reached $697 million, a 12% increase from $621 million in Q3 2024 [28]. - Total revenues for the year to date increased by 10% to $5.699 billion, compared to $5.187 billion in the same period last year [28]. - Net income for Q3 2025 was $397 million, up 4% from $382 million in Q3 2024 [28]. - The diluted EPS for Q3 2025 was $1.41, a 5% increase from $1.35 in Q3 2024 [28]. - Year-to-date GAAP Operating Profit for the consolidated entity reached $1,836 million as of 9/30/2025, compared to $1,746 million for the same period in 2024, an increase of 5.2% [54]. - Company sales for the consolidated entity totaled $1,974 million year-to-date as of 9/30/2025, up from $1,667 million in the same period of 2024, representing a growth of 18.4% [54]. - Total revenues for the quarter ended September 30, 2025, reached $1,979 million, an increase from $1,826 million in the same quarter of 2024, representing an 8.4% growth [56]. - Operating profit for the quarter ended September 30, 2025, was $666 million, compared to $619 million for the same quarter in 2024, reflecting a 7.6% increase [56]. - Year-to-date total revenues as of September 30, 2025, were $5,699 million, up from $5,187 million in 2024, indicating a 9.8% increase [59]. Division Performance - KFC Division reported a 16% increase in operating profit, with system sales of $9.34 billion, up 8% year-over-year [10]. - Taco Bell Division achieved a 9% increase in system sales, totaling $4.37 billion, with same-store sales growth of 7% [13]. - Pizza Hut Division's system sales remained even at $3.18 billion, with a same-store sales decline of 1% [15]. - KFC division company sales increased by 18% to $259 million in Q3 2025, with year-to-date sales up 48% to $721 million [30]. - Taco Bell division company sales rose by 12% to $298 million in Q3 2025, with year-to-date sales increasing by 9% to $848 million [34]. - KFC Division reported a GAAP Operating Profit of $392 million in Q3 2025, up from $339 million in Q3 2024, an increase of 15.6% [52]. - Taco Bell Division's GAAP Operating Profit rose to $267 million in Q3 2025 from $251 million in Q3 2024, marking a growth of 6.4% [52]. - Pizza Hut Division's GAAP Operating Profit decreased to $84 million in Q3 2025 from $91 million in Q3 2024, a decline of 7.7% [52]. Operational Metrics - Worldwide system sales grew by 5% excluding foreign currency translation, with Taco Bell leading at 9% and KFC at 6% [9]. - Digital system sales reached a record $10 billion, with a digital mix of approximately 60% [9]. - The company opened 1,131 gross new units across all divisions in the quarter, representing a 3% increase in unit count [9]. - The company targets long-term financial performance metrics of 5% unit growth and 7% system sales growth excluding foreign currency translation [18]. Expenses and Margins - Company restaurant expenses for Q3 2025 were $587 million, a 12% increase from $523 million in Q3 2024 [28]. - Company restaurant margin percentage decreased to (12.2)% from (6.1)%, a decline of 6.1 percentage points year-over-year [37]. - General and administrative expenses for the year-to-date period ended September 30, 2025, were $885 million, up from $830 million in 2024, a rise of 6.6% [59]. - Franchise contributions for advertising and other services increased by 6% to $426 million in Q3 2025 [28]. - Franchise advertising and other services expense for the quarter ended September 30, 2025, was $427 million, compared to $401 million in the same quarter of 2024, reflecting a 6.5% increase [56]. Strategic Initiatives - The company plans to acquire 128 Taco Bell restaurants in the Southeast U.S. in Q4, enhancing its equity-owned restaurant base [9]. - New leadership appointments were announced, including Ranjith Roy as Chief Financial Officer and Sean Tresvant as Chief Executive Officer of Taco Bell [9]. - The company recorded a refranchising loss of $17 million for the quarter ended September 30, 2025, compared to a loss of $12 million in the same quarter of 2024 [56]. - The company incurred approximately $4 million in costs associated with a strategic review of the Pizza Hut brand during the quarter ended September 30, 2025 [63]. - The company has begun a review of strategic options for the Pizza Hut brand, indicating potential future changes in its operational strategy [63]. Cash and Debt - Cash and cash equivalents increased to $1,045 million as of September 30, 2025, compared to $616 million at the end of 2024 [40]. - Net cash provided by operating activities for the year to date was $1,393 million, up from $1,176 million in the same period of 2024 [42]. - Long-term debt increased to $11,506 million as of September 30, 2025, compared to $11,306 million at the end of 2024 [40].