Yum! Brands, Inc. (NYSE: YUM) today reported results for the second-quarter ended June 30, 2020. Worldwide system sales excluding foreign currency translation declined (12)%, with a (15)% same-store sales decline and 3% net-new unit growth. Second-quarter GAAP EPS was $0.67, a decrease of (27)% over the prior year quarter. Second-quarter EPS excluding Special Items was $0.82, a decrease of (12)% over the prior year quarter.
See highlights:
- Worldwide system sales excluding foreign currency translation declined (12)%, with KFC at (18)%, Pizza Hut at (10)% and Taco Bell at (6)%.
- We reported 3% year-over-year net unit growth and net units declined (118) during the quarter.
- We recorded $84 million of pre-tax investment income related to the change in fair value of our investment in Grubhub, which resulted in a $0.21 benefit to EPS on the second-quarter. As we recorded $24 million of pre-tax investment income in the second-quarter of 2019 for a $0.06 benefit to EPS, our Grubhub investment favorably impacted year-over-year EPS growth by $0.15.
- Foreign currency translation unfavorably impacted divisional operating profit by $6 million.
David Gibbs, CEO, said:
"As we continue to reopen our restaurants across the globe, we remain focused on our Recipe for Growth and Good strategy and on ensuring customers can access our delicious food in a safe, low-contact manner with outstanding value. Leveraging our scale and capabilities as the world’s largest restaurant company, our four iconic brands are optimally positioned to drive profitable system sales growth in the new customer environment. While COVID-19 has presented incredible challenges for the entire restaurant industry, I remain confident in the power and resiliency of our unique and highly diversified global business model and that we will emerge an even stronger growth company for all our stakeholders.”
Yum! brands is down 6% Year to Date.
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