Super Second-Quarter for Yum! Brands.

Louisville, KY (August 1, 2019) - Yum! Brands, Inc. (NYSE: YUM) today reported results for the second quarter ended June 30, 2019. Worldwide system sales excluding foreign currency translation grew 10%, with 7% net-new units and 5% same-store sales growth. Second-quarter GAAP EPS was $0.92, a decrease of (5)%. Second-quarter EPS excluding Special Items was $0.93, an increase of 15%.  Greg Creed, CEO, said “Second-quarter results maintained early year momentum and helped us to exceed our already high expectations for a strong first half of 2019. I’m especially pleased to report that we delivered 10% system sales growth in the quarter, supported by broad-based strength at KFC International and Taco Bell. Our commitment to being a more focused, more franchised, and more efficient growth company positions us well for long-term success. Through the lens of our four growth drivers, we continue to leverage our unprecedented scale and expand our capabilities with the goal of enhancing franchise economics, accelerating growth and maximizing shareholder value.”   

SECOND-QUARTER HIGHLIGHTS

1. Worldwide system sales excluding foreign currency translation grew 10%, with KFC, Pizza Hut and Taco Bell each at 10%. Adjusting the prior year base to include Telepizza, system sales growth excluding foreign currency translation would have been 9% worldwide and 4% for the Pizza Hut Division.

2. We opened 312 net units in the quarter. On a year-over-year basis, which takes into account the strategic alliance with Telepizza in the fourth-quarter 2018, net new unit growth was 7%.

3. We repurchased 1.9 million shares totaling $196 million at an average price per share of $104.

4. We reflected the change in fair value of our investment in Grubhub by recording pre-tax investment income of $24 million in the second quarter of 2019 and $25 million in the second quarter of 2018, which resulted in $0.06 in EPS during each respective quarter.

5. Foreign currency translation unfavorably impacted divisional operating profit by $17 million

On this exceptional performance  Mr. Samir Menon, Managing Director, KFC India said “The quarter ending June (Q2 2019) marked the eleventh consecutive quarter of positive system sales growth, with a 22% system sales growth, for India and area countries. The results signify the brand’s continued positive momentum for the last three years. Differentiated layers with product innovation like the Smoky Red, in addition to our core bucket offering, has helped sustain momentum in the India market.

On the same occasion Mr. Ankush Tuli, Managing Director, Taco Bell APAC seems elated and stated “Taco Bell is gaining significant momentum in India, with a strong quarter of double-digit same-store sales growth.  This is on the back of category-leading value offerings such as the Big Bell Box and disruptive global innovations like the Quesalupa. We are well-positioned for exciting growth, now opening a new restaurant every 10 days, making India the fastest-growing market for Taco Bell outside of the U.S.  We are also delighted to have signed a master franchise agreement with Burman Hospitality Pvt Ltd. to open 600 Taco Bell restaurants by 2029, taking the Taco Bell experience to our fans across the country and generating over 20,000 jobs in the process.”.