Operations

Yum Brands enjoys Q3 sales growth

Provided

October 28, 2021

Yum! Brands worldwide system sales grew 8% and 4% unit growth financial results in the third quarter ended Sept. 20, 2021, according to a press release.

In all, the company recorded 760 net-new units and same-store sales growth of 5%. The company sustained digital system sales of more than $5 billion.

"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," David Gibbs, Yum! Brands CEO, said in the release. "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. 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."

Worldwide system sales for KFC was 11%, Taco Bell at 8% and Pizza Hut at 4%. Unit growth of 4% year-over-year was reported and record third-quarter net-new unit growth of 760.

The KFC division opened 636 gross restaurants in 61 countries. Same-store sales grew 1% on a two-year basis, which included the impact of about 1% of the stores being temporarily closed at the end of the third-quarter 2021. For KFC International, same-store sales declined 1% on a 2-year basis, which includes the impact of about 1% of our stores being temporarily closed as of the end of the third-quarter 2021.

For KFC U.S., same-store sales grew 13% on a twoyear basis. Pizza Hut opened 297 gross new restaurants in 39 countries. For the division, same-store sales grew 1% on a 2-year basis, which includes the impact of about 1% of stores being temporarily closed as of the end of the third-quarter 2021.

For Pizza Hut International, same-store sales declined 4% on a two-year basis, which includes the impact of about 1% of stores being temporarily closed as of the end of the third-quarter 2021.

For Pizza Hut U.S., same-store sales grew 8% on a two-year basis.

Taco Bell Division opened 74 gross new restaurants in 15 countries. Operating margin decreased 2.6 percentage points due to restaurant level margins returning to historical levels and increased general and administrative expenses offset by same-store sales growth. For the division, same-store sales grew 8% on a two-year basis.

Yum! Brands traded on a 52-week range of $92.22 to $135.77, according to Seeking Alpha.