Yum! Brands, Inc. reported its financial results for the third quarter and year-to-date period ending September 30, 2024, highlighting a mixed performance across its operating segments. The company operates over 60,000 restaurants globally, with 98% of these owned by franchisees.
For Q3 2024, Yum! Brands generated total revenues of $1,826 million, a 7% increase from $1,708 million in Q3 2023. Year-to-date revenues reached $5,187 million, up 3% from $5,040 million in the same period last year. However, net income for Q3 2024 was $382 million, down 8% from $416 million in Q3 2023, while year-to-date net income decreased by 6% to $1,063 million from $1,134 million. Basic earnings per share (EPS) for Q3 2024 were $1.36, compared to $1.48 in Q3 2023, reflecting an 8% decline.
The company’s operating segments showed varied performance. The KFC Division reported revenues of $785 million for Q1 2024, up from $700 million in Q1 2023, while Taco Bell revenues increased to $666 million from $629 million. Conversely, Pizza Hut revenues slightly decreased from $242 million in Q1 2023 to $238 million in Q1 2024. The Habit Burger & Grill Division maintained revenues at $137 million.
Yum! Brands made a strategic acquisition on April 29, 2024, purchasing 216 KFC restaurants in the U.K. and Ireland for $171 million, aimed at accelerating growth in the chicken market. This acquisition resulted in a $3 million increase in estimated goodwill, reflecting expected future cash flows beyond franchise agreement terms. The financial results of the acquired restaurants did not significantly impact the overall results for the quarter or year-to-date periods.
The company also announced a share repurchase authorization of up to $2 billion in May 2024, with $1.7 billion remaining as of September 30, 2024. Additionally, Yum! Brands refinanced $713 million under its term loan A facility and $1.25 billion under its revolving facility, which did not add new debt to the balance sheet.
Operating profit for Q3 2024 was $619 million, a slight increase from $613 million in Q3 2023. Year-to-date operating profit rose to $1,746 million from $1,709 million. However, the company faced challenges, including a decline in same-store sales and increased bad debt expenses, which partially offset gains from unit growth.
As of September 30, 2024, Yum! Brands had cash and cash equivalents of $457 million and total debt outstanding of $11 billion, with a consolidated net leverage ratio of 4.1x EBITDA. The company continues to navigate market conditions, including impacts from foreign currency fluctuations and geopolitical tensions affecting operations in the Middle East.
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