Yum! Brands Sales Intelligence Blog
Yum! Brands, Inc.
1441 Gardiner Lane
502 874 8300
Yum! Brands Blog Highlights
Yum! Brands, Inc. (NYSE: YUM) is ranked #505 on the 2020 Fortune 500 list
- Yum! Brands expands role of executive, creating new chief equity and inclusion officer role, given to James Fripp
- Yum! Brands Digital Sales Reach Record $3.5B Amid Pandemic
- Yum! Brands taps former Disney exec, Cameron Davies for new Chief Data Officer Role
Yum! Brands Social Media properties
Yum! Brands Earnings Call Highlights
July 30, 2020
Executives In Attendance
- Keith Siegner - Vice President, Investor Relations, M&A and Treasurer
- David Gibbs - Chief Executive Officer
- Chris Turner - Chief Financial Officer
Analysts in Attendance
- John Glass - Morgan Stanley
- Gregory Francfort - Bank of America
- Sara Senatore - Bernstein
- John Ivankoe - JPMorgan
- Dennis Geiger - UBS
- Andrew Charles - Cowen and Company
- Peter Saleh - BTIG
- First, Q2 results, the quarter was significantly impacted by COVID-19, the primary driver of Yum Brands' 25% core operating profit decline. Overall, Yum! system sales declined 12% with a 15% same-store sales decline, offset by a 3% increase in net units year-over-year.
- Overall, Yum Brands' sales declines were primarily driven by temporary store closures, which peaked in early April at about 11,000 restaurants. Yum Brands then experienced a consistent pace of reopening until the June 10 8-K filing when approximately 5,000 units or 10% of Yum Brands' global system remained close.
- Yum Brands now has over 34,000 restaurants offering delivery around the world, representing a 13% increase year-over-year, in part driven by expanded aggregator partnerships.
- Yum Brands' digital sales mix has increased dramatically to over 30% of system sales, a 15-point year-over-year improvement. To put that into context, during the quarter, digital sales were approximately $3.5 billion, a $1 billion step-up from Q2 2019.
- Yum Brands saw consistent strength in Canada, the U.S. and Australia. And after government-mandated closures eased, saw resiliency in Germany and the U.K. All of these markets have good drive-thru coverage, strong off-premise capabilities and robust digital foundations. Western Europe, in particular, KFC France, which was hit hard early on, led the way in reopening markets where all channels and restaurants have been closed due to lockdown.
- Yum Brands' off-premise channel generated 21% same-store sales growth when excluding the drag of closed Express stores or 16% same-store sales growth when including the drag of closed Express units. During the quarter, Yum Brands launched a contactless initiative by adding additional pickup and payment options for customers.
Yum Brands Earnings Call on July 30, 2020: https://seekingalpha.com/article/4362409-yum-brands-inc-yum-ceo-david-gibbs-on-q2-2020-results-earnings-call-transcript?part=single
Yum! Brands Executive Leadership
|David Gibbs||Chief Executive Officer, Yum! Brands Inc.|
|Paget Alves||Former Chief Sales Officer of Sprint Corporation|
|Keith Barr||Chief Executive Officer of InterContinental Hotels Group (IHG)|
|Michael J. Cavanagh||Senior Executive Vice President and Chief Financial Officer of Comcast Corporation|
|Chris Connor||Former Executive Chairman of The Sherwin-Williams Company|
|Brian Cornell||Non-Executive Chairman, Yum! Brands Chairman and CEO, Target Corporation|
|Tanya Domier||Chief Executive Officer, Advantage Solutions|
|Mirian M. Graddick-Weir||Former Executive Vice President Human Resources, Merck & Co., Inc.|
|Thomas C. Nelson||Chairman, Chief Executive Officer and President, National Gypsum Company|
|P. Justin Skala||Chief Executive Officer, BMI Group|
|Elane B. Stock||Former Group President, Kimberly-Clark International|
|Annie Young-Scrivner||Chief Executive Officer of GODIVA Chocolatier|
Yum! Brands Annual Report Highlights
Yum! Brands 2019 Annual Report filed for Fiscal Year-End December 31, 2019
YUM has over 50,000 restaurants in more than 150 countries and territories primarily operating under the three concepts of KFC, Pizza Hut and Taco Bell (the “Concepts”). These three concepts are global leaders of the chicken, pizza and Mexican-style food categories, respectively. At December 31, 2019, 98% of Yum Brands' units are operated by independent franchisees or licensees under the terms of franchise or license agreements.
Yum! Brands Financial Highlights
|Fiscal Year Ends||31-Dec-19|
|Most Recent Quarter||30-Jun-20|
|Return on Assets||19.81%|
|Return on Equity||N/A|
|Revenue Per Share||18.1|
|Quarterly Revenue Growth||-8.50%|
|Net Income Avi to Common||1.03B|
|Quarterly Earnings Growth||-28.70%|
|Total Cash Per Share||4.78|
|Book Value Per Share||-26.94|
|Cash Flow Statement|
|Operating Cash Flow||1.22B|
|Levered Free Cash Flow||886.12M|
Yum! Brands Digital Transformation
Yum! Brands Business Strategy
Yum! Brands' Recipe for Growth is based on four key drivers:
- Unrivaled Culture and Talent: Leverage culture and people capability to fuel brand performance and franchise success
- Unmatched Operating Capability: Recruit and equip the best restaurant operators in the world to deliver great customer experiences
- Relevant, Easy and Distinctive Brands: Innovate and elevate iconic restaurant brands people trust and champion
- Bold Restaurant Development: Drive market and franchise expansion with strong economics and value
Yum! Brands Restaurant Operations
Through its Concepts, YUM develops, operates and franchises a worldwide system of both traditional and non-traditional Quick Service Restaurants (“QSR”). Traditional units can feature dine-in, carryout, drive-thru and delivery services.
Restaurant management structure varies by Concept and unit size. Generally, each restaurant is led by a restaurant general manager (“RGM”), together with one or more assistant managers, depending on the operating complexity and sales volume of the restaurant.
Yum! Brands Supply Chain and Distribution
In the U.S., the Company, along with the representatives of the Company’s KFC, Pizza Hut and Taco Bell franchisee groups, are members of Restaurant Supply Chain Solutions, LLC (“RSCS”), which is responsible for purchasing certain restaurant products and equipment.
Yum! Brands Org Charts
- KFC Division
- Pizza Hut Division
- Taco Bell Division
- The Habit Burger Grill
More on Yum! Brands
- Yum! Brands Contact Info
- Yum! Brands Org Charts on Corporate Structure, Executive Leadership, Sales, Marketing, Finance, HR, Supply Chain, Technology, R&D, Manufacturing, etc.
- Yum! Brands Financial Insights
- Yum! Brands SWOT Report
- Yum! Brands Technologies in Use
- Yum! Brands IT Budgets
- Yum! Brands Social Media Profiles
- Yum! Brands Actionable Sales Trigger Events
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