Financial Data and Key Metrics Changes - The company reported a 5% increase in system sales and a 7% growth in core operating profit for the third quarter [10][20] - Core operating profit per share (EPS) increased by 15% year-over-year to $1.58 [21] - Digital sales reached $10 billion, representing approximately 60% of total sales [20] Business Line Data and Key Metrics Changes - KFC, which accounts for 53% of divisional operating profit, achieved a 14% growth in core operating profit, driven by 6% unit growth and 3% same-store sales growth [11] - Taco Bell, representing 36% of divisional operating profit, saw same-store sales grow by 7%, with digital sales increasing by 28% year-over-year [14][20] - Pizza Hut opened 289 gross units this quarter, although closures in certain markets impacted overall performance [23] Market Data and Key Metrics Changes - KFC's international markets, particularly the U.K. and South Africa, reported strong same-store sales growth of 9% and 7% respectively [11] - Taco Bell International also experienced accelerated same-store sales growth, with expansion into new markets like Greece and Ireland [15] - The U.S. market remains competitive, but Taco Bell continues to gain market share [42] Company Strategy and Development Direction - The company is focusing on three key areas: staying relevant to the next generation of consumers, leveraging global scale to strengthen franchisee economics, and extending technology advantages across more restaurants [7][8] - A strategic review of the Pizza Hut brand has been initiated to explore options for maximizing value [9][73] - The company plans to acquire 128 Taco Bell restaurants in the Southeast U.S. to enhance profitability and unit development [10][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumers, noting that Taco Bell is meeting consumer demands for craveable food, convenience, and value [42] - The company anticipates continued strong performance from KFC and Taco Bell, with expectations for record gross unit openings [29] - Management acknowledged challenges such as beef inflation but remains optimistic about long-term growth prospects [20][29] Other Important Information - The company has made leadership changes to enhance its strategic focus, including the promotion of Ranjith Roy to CFO and the creation of a Chief Scale Officer role [8][9] - The company is committed to maintaining an asset-light model while pursuing strategic investments that yield high returns [28] Q&A Session Summary Question: Opportunities for KFC amidst Pizza Hut's review - Management highlighted KFC's strong growth potential and the importance of brand relevance and innovation in driving future success [36][38] Question: Taco Bell's outperformance and future momentum - Management noted that Taco Bell continues to take market share and emphasized the importance of craveable food, convenience, and value in maintaining momentum [42][44] Question: Strengthening franchisee economics - Management discussed leveraging global scale and technology to improve franchisee profitability and unit economics [49][50] Question: Strategic options for Pizza Hut - Management reiterated Pizza Hut's strengths but acknowledged the need for potential restructuring to enhance its market position [72][73] Question: G&A spend management - Management expressed commitment to maintaining low G&A as a percentage of system sales while considering strategic investments for growth [83]