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 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 some markets partially offset these openings [23] Market Data and Key Metrics Changes - KFC's same-store sales in the U.K. increased by 9%, while South Africa reported 7% same-store sales growth [11] - Taco Bell International experienced accelerated same-store sales growth, with new market entries in Greece and Ireland [15] - The company opened a record 1,131 gross new units globally in Q3, with KFC leading with 760 units [21] Company Strategy and Development Direction - The company is focusing on three areas for growth: consumer relevance, franchisee economics, and technology strategy [7][8] - A strategic review for the Pizza Hut brand has been initiated to explore options for maximizing value [9][72] - The acquisition of 128 Taco Bell restaurants is expected to enhance profitability and unit development in the Southeast U.S. [10][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumers, noting that Taco Bell continues to gain market share despite economic caution [42] - The company anticipates strong performance from KFC and Taco Bell, projecting record gross unit openings for KFC and robust international development for Taco Bell [29] - Management acknowledged challenges such as beef inflation but remains optimistic about maintaining margins and growth [20][29] Other Important Information - The company is committed to maintaining an asset-light model while pursuing strategic acquisitions that offer significant returns [28] - The new leadership structure aims to enhance operational agility and franchisee support [8][9] Q&A Session Summary Question: Opportunities for KFC amidst Pizza Hut's review - Management highlighted KFC's strong global presence and ongoing unit development, emphasizing the importance of brand relevance and consumer engagement [36][38] Question: Taco Bell's outperformance and future momentum - Management noted that Taco Bell's growth is driven by craveable food, convenience, and value, with plans to continue this momentum into the next year [42][44] Question: Strengthening franchisee economics - Management discussed leveraging global scale and technology to improve franchisee profitability and unit growth [49][51] Question: Strategic review of Pizza Hut - Management reiterated Pizza Hut's strengths while exploring options for enhancing its market position, indicating a thoughtful approach to the review process [71][72] Question: G&A spend management - Management acknowledged the importance of maintaining low G&A expenses while considering strategic investments for growth [83]