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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

November 5, 2024
________________________
YUM! BRANDS, INC.
(Exact name of registrant as specified in its charter)

Commission file number 1-13163

North Carolina13-3951308
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification No.)
1441 Gardiner Lane,Louisville,Kentucky40213
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code:(502)874-8300
Former name or former address, if changed since last report:N/A

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act
 Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
 Common Stock, no par valueYUMNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Section 2 – Financial Information

Item 2.02      Results of Operations and Financial Condition

On November 5, 2024, YUM! Brands, Inc. ("YUM") issued a press release announcing financial results for the quarter ended September 30, 2024.  A copy of the press release is attached hereto as Exhibit 99.1.


Section 9 – Financial Statements and Exhibits

    Item 9.01      Financial Statements and Exhibits

(c)Exhibits
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


   YUM! BRANDS, INC. 
   (Registrant) 



Date:November 5, 2024 /s/ David E. Russell 
   Sr. Vice President, Finance and Corporate Controller 
   (Principal Accounting Officer) 


yumbrandslockuprgb_verticaa.jpg
NEWS

Yum! Brands Reports Third-Quarter Results
Taco Bell U.S. Same-Store Sales Growth +4%; KFC International Unit Growth +9%
Digital Sales Mix Exceeding 50%


Louisville, KY (November 5, 2024) - Yum! Brands, Inc. (NYSE: YUM) today reported results for the third quarter ended September 30, 2024. Worldwide system sales, excluding foreign currency translation, grew 1% reflecting 5% unit growth. Third-quarter GAAP operating profit grew 1% and third-quarter core operating profit grew 3%. Third-quarter GAAP EPS was $1.35 and third-quarter EPS excluding Special Items was $1.37. Third-quarter EPS excluding Special Items reflects a $0.14 negative impact from a higher current year tax rate and lower investment income year-over-year.

DAVID GIBBS COMMENTS
David Gibbs, CEO, said “I'm incredibly proud of how our teams have navigated such a complex consumer environment to deliver 3% Core Operating Profit growth this quarter. The strengths of our twin growth engines were evident: Taco Bell U.S. significantly outperformed QSR competition with 4% same-store sales growth, and KFC International grew units an impressive 9% year-over-year. KFC International's unit openings spanned 64 countries this quarter, and year-to-date gross openings are up nearly 150 units year-over-year. While sales have been impacted by pressures relating to geopolitical conflicts and challenged consumer sentiment, our iconic brands which are led by our world-class talent and enabled by Yum!'s unmatched scale and cutting-edge, proprietary tech, are positioned for unstoppable growth."

THIRD-QUARTER HIGHLIGHTS
•Worldwide system sales grew 1%, excluding foreign currency translation, with KFC at 1%, Taco Bell at 5%, and Pizza Hut (1)%.
•Unit count increased 5% including 1,029 gross new units in the quarter.
•Robust digital system sales exceeding $8 billion, with digital mix over 50%.
•GAAP operating profit grew 1% and core operating profit grew 3%.
•Foreign currency translation unfavorably impacted divisional operating profit by $3 million.
Reported Results% Change
System Sales
Ex F/X		Same-Store SalesUnitsGAAP Operating Profit
Core
Operating Profit1
KFC Division+1(4)+7(2)(1)
Taco Bell Division+5+4+2+11+11
Pizza Hut Division(1)(4)+2(6)(5)
Worldwide+1(2)+5+1+3
Third-QuarterYear-to-Date
20242023% Change20242023% Change
GAAP EPS$1.35$1.46(8)$3.73$3.97(6)
Less Special Items EPS1
$(0.02)$0.02NM$(0.14)$0.06NM
EPS Excluding Special Items$1.37$1.44(5)$3.87$3.91(1)

1 See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Core Operating Profit and Special Items.
All comparisons are versus the same period a year ago.

System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further details.

Digital system sales includes all transactions at system restaurants where consumers utilize ordering interaction that is primarily facilitated by automated technology.
Yum! Brands, Inc. • 1900 Colonel Sanders Lane • Louisville, KY 40213 • P: 502 874-8300 • investors.yum.com



KFC DIVISION

Third-QuarterYear-to-Date
%/ppts Change%/ppts Change
20242023ReportedEx F/X20242023ReportedEx F/X
Restaurants31,14329,051+7N/A31,14329,051+7N/A
System Sales ($MM)8,6698,620+1+125,02324,975Even+2
Same-Store Sales Growth (%)(4)+6NMNM(3)+9NMNM
Franchise and Property Revenues ($MM)417426(2)(2)1,2191,254(3)(1)
Operating Profit ($MM)339344(2)(1)986975+1+3
Operating Margin (%)43.149.2(6.1)(5.9)46.247.1(0.9)(0.4)

Third-Quarter (% Change)Year-to-Date (% Change)
InternationalU.S.InternationalU.S.
System Sales Growth Ex F/X+2(7)+4(7)
Same-Store Sales Growth(3)(5)(3)(6)

•KFC Division opened 685 gross new restaurants across 65 countries.
•Company-owned restaurant margins were 12.5%, including the newly acquired U.K. stores for the full quarter.
•Foreign currency translation unfavorably impacted operating profit by $1 million.

KFC Markets1
Percent of KFC System Sales2
System Sales Growth Ex F/X
Third-Quarter
(% Change)		Year-to-Date
(% Change)
China27%+5+6
United States15%(7)(7)
Europe11%+6+8
Asia10%(6)(7)
Australia7%+2+3
Latin America7%+8+16
United Kingdom6%(6)(3)
Middle East / Turkey / North Africa6%(10)(9)
Africa5%+10+10
Thailand2%+6+7
Canada2%+3+3
India2%+7+9
1Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets.
2Reflects Full Year 2023.
Yum! Brands, Inc. • 1900 Colonel Sanders Lane • Louisville, KY 40213 • P: 502 874-8300 • investors.yum.com


TACO BELL DIVISION
Third-QuarterYear-to-Date
%/ppts Change%/ppts Change
20242023ReportedEx F/X20242023ReportedEx F/X
Restaurants8,5948,385+2N/A8,5948,385+2N/A
System Sales ($MM)4,0083,804+5+511,62211,028+5+5
Same-Store Sales Growth (%)+4+8NMNM+3+7NMNM
Franchise and Property Revenues ($MM)234218+7+7678637+6+6
Operating Profit ($MM)251226+11+11709658+8+8
Operating Margin (%)37.636.01.61.636.736.10.60.6


•Taco Bell Division opened 49 gross new restaurants across 15 countries.
•Taco Bell U.S. system sales grew 5% and Taco Bell International system sales excluding foreign currency translation, grew 6%.
•Taco Bell U.S. and Taco Bell International same-store sales grew 4% and 1%, respectively.
•Company-owned restaurant margins were 23.4%, down slightly year-over-year.


PIZZA HUT DIVISION
Third-QuarterYear-to-Date
%/ppts Change%/ppts Change
20242023ReportedEx F/X20242023ReportedEx F/X
Restaurants19,92719,469+2N/A19,92719,469+2N/A
System Sales ($MM)3,1843,243(2)(1)9,4919,780(3)(2)
Same-Store Sales Growth (%)(4)+1NMNM(5)+4NMNM
Franchise and Property Revenues ($MM)150150Even+1446454(2)(1)
Operating Profit ($MM)9197(6)(5)278292(5)(3)
Operating Margin (%)38.340.3(2.0)(1.6)38.939.6(0.7)(0.3)

Third-Quarter (% Change)Year-to-Date (% Change)
InternationalU.S.InternationalU.S.
System Sales Growth Ex F/X(3)(1)(2)(2)
Same-Store Sales Growth(6)(1)(6)(3)

•Pizza Hut Division opened 292 gross new restaurants across 36 countries.
•Foreign currency translation unfavorably impacted operating profit by $2 million.
3


Pizza Hut Markets1
Percent of Pizza Hut System Sales2
System Sales Growth Ex F/X
Third-Quarter
(% Change)		Year-to-Date
(% Change)
United States41%(1)(2)
China18%(2)+2
Asia13%(3)(4)
Europe12%(7)(6)
Latin America6%Even+1
Middle East / Africa5%(4)(6)
Canada3%+2+4
India2%+3+2

1Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets.
2Reflects Full Year 2023.

HABIT BURGER & GRILL DIVISION

•Habit Burger & Grill Division opened 3 gross new restaurants.
•Habit Burger & Grill Division system sales declined 1% with same-store sales declining 5%.

OTHER ITEMS
•See reconciliation of Non-GAAP Measurements to GAAP results within this release for further detail of Special Items by financial statement line item including the impact of Special Items on General and administrative expenses.
•Disclosures pertaining to outstanding debt in our Restricted Group capital structure will be provided at the time of the filing of the third-quarter Form 10-Q.
4

CONFERENCE CALL
Yum! Brands, Inc. will host a conference call to review the company's financial performance and strategies at 7:45 a.m. Eastern Time November 5, 2024. The number is 404/975-4839 for U.S. callers, 833/950-0062 for Canada callers, and +1/929-526-1599 for international callers, conference ID 611638.

The call will be available for playback beginning at 10:00 a.m. Eastern Time November 5, 2024 through November 12, 2024. To access the playback, dial 866/813-9403 in the U.S., 226/828-7578 in Canada, and +1/929-458-6194 internationally, conference ID 196705.

The webcast and the playback can be accessed by visiting Yum! Brands' website, investors.yum.com/events-and-presentations and selecting “Q3 2024 Yum! Brands, Inc. Earnings Call.”
ADDITIONAL INFORMATION ONLINE
Quarter-end dates for each division, restaurant count details, definitions of terms and Restricted Group financial information are available at investors.yum.com. Reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures are included in our Condensed Consolidated Summary of Results.
FORWARD-LOOKING STATEMENTS
This announcement may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “expect,” “expectation,” “believe,” “anticipate,” “may,” “could,” “intend,” “belief,” “plan,” “estimate,” “target,” “predict,” “likely,” “seek,” “project,” “model,” “ongoing,” “will,” “should,” “forecast,” “outlook” or similar terminology. These statements are based on and reflect our current expectations, estimates, assumptions and/ or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance or capital structure of Yum! Brands, will prove to be correct or that any of our expectations, estimates or projections will be achieved.

Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: food safety and food- or beverage-borne illness concerns; adverse impacts of health epidemics, deterioration in public health conditions or the occurrence of other catastrophic or unforeseen events; the success and financial stability of our concepts’ franchisees, particularly in light of challenging macroeconomic conditions; the success of our development strategy; anticipated benefits from past or potential future acquisitions, investments, other strategic transactions or initiatives, or our portfolio business model; our significant exposure to the Chinese market; our global operations and related exposure to geopolitical instability, including the Middle East conflict as well as potential expansion of trade policies; foreign currency risks and foreign exchange controls; our ability to protect the integrity or availability of IT systems or the security of confidential information and other cybersecurity risks; compliance with data privacy and data protection legal requirements; our ability to successfully implement technology initiatives, including utilization of artificial intelligence; our increasing dependence on digital commerce platforms; the impact of social media; our ability to protect our trademarks or other intellectual property; shortages or interruptions in the availability and the delivery of food, equipment and other supplies; the loss of key personnel, labor shortages and increased labor costs, including as a result of state and local legislation related to wages and working conditions; changes in food prices and other operating costs; our corporate reputation, the value and perception of our brands and changes in consumer preferences and wellness trends; evolving expectations and requirements with respect to social and environmental sustainability matters; adverse effects of severe weather and climate change; pending or future litigation and legal claims or proceedings; changes in, or noncompliance with, legal requirements; tax matters, including changes in tax rates or laws, impositions of new taxes, tax implications of our restructurings, or disagreements with taxing authorities; changes in consumer discretionary spending and macroeconomic conditions, including inflationary pressures and elevated interest rates; competition within the retail food industry; risks relating to our level of indebtedness. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

The forward-looking statements included in this announcement are only made as of the date of this announcement and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions “Risk Factors” and “Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q) for additional detail about factors that could affect our financial and other results.

Yum! Brands, Inc., based in Louisville, Kentucky, and its subsidiaries franchise or operate a system of over 60,000 restaurants in more than 155 countries and territories under the company’s concepts – KFC, Taco Bell, Pizza Hut and Habit Burger & Grill. The Company's KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-style food, and pizza categories, respectively. Habit Burger & Grill is a fast casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. In 2024, Yum! was named to the Dow Jones Sustainability Index North America, and the company was recognized among TIME Magazine’s list of Best Companies for Future Leaders, Newsweek’s list of America’s Most Responsible Companies and USA Today’s America’s Climate Leaders. Yum! also received widespread recognition in 2023, including being listed on the Bloomberg Gender-Equality Index; and Forbes’ list of America’s Best Employers for Diversity. In addition, KFC, Taco Bell and Pizza Hut brands were ranked in the top five of Entrepreneur’s Top Global Franchises Ranking for 2023.    

Analysts are invited to contact:
Matt Morris, Head of Investor Relations at 888/298-6986
Members of the media are invited to contact:
Virginia Ferguson, Vice President, Public Relations, at 502/874-8200
5

YUM! Brands, Inc.
Condensed Consolidated Summary of Results
(amounts in millions, except per share amounts)
(unaudited)
 Quarter ended% ChangeYear to date% Change
 9/30/249/30/23B/(W)9/30/249/30/23B/(W)
Revenues
Company sales$621 $510 22$1,667 $1,495 12
Franchise and property revenues804 796 12,350 2,351 Even
Franchise contributions for advertising and other services401 402 Even1,170 1,194 (2)
Total revenues1,826 1,708 75,187 5,040 3
Costs and Expenses, Net
Company restaurant expenses523 421 (24)1,393 1,239 (12)
General and administrative expenses263 267 2830 840 1
Franchise and property expenses36 27 (41)90 95 5
Franchise advertising and other services expense401 400 Even1,169 1,183 1
Refranchising (gain) loss(12)(19)NM(31)(40)NM
Other (income) expense(4)(1)NM(10)14 NM
Total costs and expenses, net1,207 1,095 (10)3,441 3,331 (3)
Operating Profit619 613 11,746 1,709 2
Investment (income) expense, net(1)(16)NM21 (21)NM
Other pension (income) expense(2)(2)NM(5)(5)NM
Interest expense, net120 126 5358 381 6
Income before income taxes502 505 (1)1,372 1,354 1
Income tax provision120 89 (34)309 220 (40)
Net Income$382 $416 (8)$1,063 $1,134 (6)
Basic EPS
EPS$1.36 $1.48 (8)$3.77 $4.03 (7)
Average shares outstanding282 281 —282 281 —
Diluted EPS
EPS$1.35 $1.46 (8)$3.73 $3.97 (6)
Average shares outstanding285 286 —285 286 —
Dividends declared per common share$0.67 $0.605 $2.01 $1.815 

See accompanying notes.
 Percentages may not recompute due to rounding.
6

YUM! Brands, Inc.
KFC DIVISION Operating Results
(amounts in millions)
(unaudited)

 Quarter ended% ChangeYear to date% Change
 9/30/249/30/23B/(W)9/30/249/30/23B/(W)
Company sales$220 $117 88$488 $342 43
Franchise and property revenues417 426 (2)1,219 1,254 (3)
Franchise contributions for advertising and other services148 157 (5)427 473 (10)
Total revenues785 700 122,134 2,069 3
Company restaurant expenses192 100 (92)428 295 (45)
General and administrative expenses86 86 (1)253 265 4
Franchise and property expenses20 15 (38)46 57 19
Franchise advertising and other services expense148 156 5424 470 10
Other (income) expense— (1)NM(3)7 NM
Total costs and expenses, net446 356 (26)1,148 1,094 (5)
Operating Profit$339 $344 (2)$986 $975 1
Company restaurant margin %1
12.5 %14.3 %(1.8) ppts.12.2 %13.6 %(1.4) ppts.
Operating margin43.1 %49.2 %(6.1) ppts.46.2 %47.1 %(0.9) ppts.
 
See accompanying notes.
Percentages may not recompute due to rounding.

1See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Company restaurant margin %.

7

YUM! Brands, Inc.
TACO BELL DIVISION Operating Results
(amounts in millions)
(unaudited)
 
 Quarter ended% ChangeYear to date% Change
 9/30/249/30/23B/(W)9/30/249/30/23B/(W)
Company sales$267 $256 4$775 $738 5
Franchise and property revenues234 218 7678 637 6
Franchise contributions for advertising and other services165 155 6477 447 7
Total revenues666 629 61,930 1,822 6
Company restaurant expenses205 195 (5)590 561 (5)
General and administrative expenses41 47 11137 141 3
Franchise and property expenses6 7 1422 21 (5)
Franchise advertising and other services expense163 153 (6)473 439 (8)
Other (income) expense— 1 NM(1)2 NM
Total costs and expenses, net415 403 (3)1,221 1,164 (5)
Operating Profit$251 $226 11$709 $658 8
Company restaurant margin %1
23.4 %23.8 %(0.4) ppts.23.9 %23.9 %Even
Operating margin37.6 %36.0 %1.6 ppts.36.7 %36.1 %0.6 ppts.
 
See accompanying notes.
Percentages may not recompute due to rounding.

1See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Company restaurant margin %.



8

YUM! Brands, Inc.
PIZZA HUT DIVISION Operating Results
(amounts in millions)
(unaudited)

 
 Quarter ended% ChangeYear to date% Change
 9/30/249/30/23B/(W)9/30/249/30/23B/(W)
Company sales$1 $2 (31)$5 $11 (57)
Franchise and property revenues150 150 Even446 454 (2)
Franchise contributions for advertising and other services87 90 (3)264 273 (3)
Total revenues238 242 (1)715 738 (3)
Company restaurant expenses1 2 335 11 55
General and administrative expenses51 51 2153 155 1
Franchise and property expenses9 5 (113)19 14 (45)
Franchise advertising and other services expense89 91 2270 273 1
Other (income) expense(3)(4)NM(10)(7)NM
Total costs and expenses, net147 145 (2)437 446 2
Operating Profit$91 $97 (6)$278 $292 (5)
Company restaurant margin %1
(6.1)%(9.0)%2.9 ppts.(1.9)%1.2 %(3.1) ppts.
Operating margin38.3 %40.3 %(2.0) ppts.38.9 %39.6 %(0.7) ppts.
 
See accompanying notes.
Percentages may not recompute due to rounding.

1See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Company restaurant margin %.


9

YUM! Brands, Inc.
Condensed Consolidated Balance Sheets
(amounts in millions)
(unaudited)

 

9/30/24
12/31/23
ASSETS  
Current Assets 
Cash and cash equivalents$457 $512 
Accounts and notes receivable, less allowance: $54 in 2024 and $39 in 2023708 737 
Prepaid expenses and other current assets460 360 
Total Current Assets1,625 1,609 
Property, plant and equipment, net of accumulated depreciation of $1,394 in 2024
and $1,332 in 20231,300 1,197 
Goodwill735 642 
Intangible assets, net416 377 
Other assets1,352 1,361 
Deferred income taxes1,033 1,045 
Total Assets$6,461 $6,231 
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities
Accounts payable and other current liabilities$1,138 $1,169 
Income taxes payable24 55 
Short-term borrowings24 53 
Total Current Liabilities1,186 1,277 
Long-term debt11,169 11,142 
Other liabilities and deferred credits1,780 1,670 
Total Liabilities14,135 14,089 
Shareholders' Deficit
Common Stock, no par value, 750 shares authorized; 280 shares issued in 2024 and 281 shares issued in 2023
— 60 
Accumulated deficit(7,389)(7,616)
Accumulated other comprehensive loss(285)(302)
Total Shareholders' Deficit(7,674)(7,858)
Total Liabilities and Shareholders' Deficit$6,461 $6,231 
 See accompanying notes.


10

YUM! Brands, Inc.
Condensed Consolidated Statements of Cash Flows
(amounts in millions)
(unaudited)
 
Year to date
 9/30/249/30/23
Cash Flows - Operating Activities 
Net Income$1,063 $1,134 
Depreciation and amortization120 104 
Refranchising (gain) loss(31)(40)
Investment (income) expense, net21 (21)
Deferred income taxes5 (93)
Share-based compensation expense52 69 
Changes in accounts and notes receivable28 (13)
Changes in prepaid expenses and other current assets(21)(16)
Changes in accounts payable and other current liabilities(46)(52)
Changes in income taxes payable(67)(4)
Other, net52 87 
Net Cash Provided by Operating Activities 1,176 1,155 
Cash Flows - Investing Activities
Capital spending(151)(179)
Proceeds from sale of Devyani Investment104 — 
Proceeds from sale of KFC Russia— 121 
Acquisition of KFC U.K. and Ireland restaurants(174)— 
Proceeds from refranchising of restaurants48 57 
Maturities (purchases) of Short term investments, net(91)— 
Other, net(28)(3)
Net Cash Used in Investing Activities(292)(4)
Cash Flows - Financing Activities
Proceeds from long-term debt237 — 
Repayments of long-term debt(472)(60)
Revolving credit facilities, three months or less, net205 (279)
Repurchase shares of Common Stock(327)(50)
Dividends paid on Common Stock(565)(508)
Other, net(69)(24)
Net Cash Used in Financing Activities (991)(921)
Effect of Exchange Rate on Cash and Cash Equivalents10 (2)
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash
Equivalents		(97)228 
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - Beginning of Period724 647 
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - End of Period$627 $875 
See accompanying notes.

11

Reconciliation of Non-GAAP Measurements to GAAP Results
(amounts in millions, except per share amounts)
(unaudited)
 
In addition to the results provided in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), the Company provides the following non-GAAP measurements.

•Diluted Earnings Per Share ("EPS") excluding Special Items (as defined below);
•Effective Tax Rate excluding Special Items;
•Core Operating Profit. Core Operating Profit excludes Special Items and foreign currency translation (“F/X”) and we use Core Operating Profit for the purposes of evaluating performance internally;
•Company restaurant profit and Company restaurant margin as a percentage of sales (as defined below).

These non-GAAP measurements are not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of these non-GAAP measurements provide additional information to investors to facilitate the comparison of past and present operations.

Special Items are not included in any of our Division segment results as the Company does not believe they are indicative of our ongoing operations due to their size and/or nature. Our chief operating decision maker does not consider the impact of Special Items when assessing segment performance. The Special Items are described in (a) - (d) in the accompanying notes.

Company restaurant profit is defined as Company sales less Company restaurant expenses, both of which appear on the face of our Condensed Consolidated Statements of Income. Company restaurant expenses include those expenses incurred directly by our Company-owned restaurants in generating Company sales, including cost of food and paper, cost of restaurant-level labor, rent, depreciation and amortization of restaurant-level assets and advertising expenses incurred by and on behalf of that Company restaurant. Company restaurant margin as a percentage of sales ("Company restaurant margin %") is defined as Company restaurant profit divided by Company sales. We use Company restaurant profit for the purposes of internally evaluating the performance of our Company-owned restaurants and we believe Company restaurant profit provides useful information to investors as to the profitability of our Company-owned restaurants. In calculating Company restaurant profit, the Company excludes revenues and expenses directly associated with our franchise operations as well as non-restaurant-level costs included in General and administrative expenses, some of which may support Company-owned restaurant operations. The Company also excludes restaurant-level asset impairment and closures expenses, which have historically not been significant, from the determination of Company restaurant profit as such expenses are not believed to be indicative of ongoing operations. Company restaurant profit and Company restaurant margin % as presented may not be comparable to other similarly titled measures of other companies in the industry.

Certain non-GAAP measurements are presented excluding the impact of F/X. These amounts are derived by translating current year results at prior year average exchange rates. We believe the elimination of the F/X impact provides better year-to-year comparability without the distortion of foreign currency fluctuations.

 Quarter endedYear to date
 9/30/249/30/239/30/249/30/23
Reconciliation of GAAP Operating Profit to Core Operating Profit
Consolidated
GAAP Operating Profit$619 $613 $1,746 $1,709 
Detail of Special Items:
(Gain) loss associated with market-wide refranchisings(a)
(1)(2)3 (7)
Operating (profit) loss impact from decision to exit Russia(b)
— (2)— 10 
Charges associated with Resource Optimization(c)
12 3 58 13 
Other Special Items Expense— 2 — 3 
Special Items Expense - Operating Profit11 1 61 19 
Negative Foreign Currency Impact on Division Operating Profit3 N/A26 N/A
Core Operating Profit$633 $614 $1,833 $1,728 
Special Items as shown above were recorded to the financial statement line items identified below.
Condensed Consolidated Summary of Results Line Item
General and administrative expenses$11 $4 $57 $19 
Franchise and property expenses— (1)— 1 
Refranchising (gain) loss(1)(2)3 (7)
Other (income) expense1 — 1 6 
Special Items Expense - Operating Profit$11 $1 $61 $19 
12

 Quarter endedYear to date
 9/30/249/30/239/30/249/30/23
KFC Division
GAAP Operating Profit$339 $344 $986 $975 
Negative (Positive) Foreign Currency Impact 1 N/A21 N/A
Core Operating Profit$340 $344 $1,007 $975 
Taco Bell Division
GAAP Operating Profit$251 $226 $709 $658 
Negative (Positive) Foreign Currency Impact— N/A— N/A
Core Operating Profit$251 $226 $709 $658 
Pizza Hut Division
GAAP Operating Profit$91 $97 $278 $292 
Negative (Positive) Foreign Currency Impact2 N/A5 N/A
Core Operating Profit$93 $97 $283 $292 
Habit Burger & Grill Division
GAAP Operating Profit (Loss)$1 $(2)$(2)$(4)
Negative (Positive) Foreign Currency Impact— N/A— N/A
Core Operating Profit (Loss)$1 $(2)$(2)$(4)
Reconciliation of GAAP Net Income to Net Income excluding Special Items
GAAP Net Income$382 $416 $1,063 $1,134 
Special Items Expense - Operating Profit11 1 61 19 
Special Items Tax Benefit(d)
(2)(4)(19)(36)
Net Income excluding Special Items$391 $413 $1,105 $1,117 
Reconciliation of Diluted EPS to Diluted EPS excluding Special Items
Diluted EPS $1.35 $1.46 $3.73 $3.97 
Less Special Items Diluted EPS(0.02)0.02 (0.14)0.06 
Diluted EPS excluding Special Items$1.37 $1.44 $3.87 $3.91 
Reconciliation of GAAP Effective Tax Rate to Effective Tax Rate excluding Special Items
GAAP Effective Tax Rate23.8 %17.7 %22.5 %16.3 %
Impact on Tax Rate as a result of Special Items(0.1)%(0.9)%(0.4)%(2.4)%
Effective Tax Rate excluding Special Items23.9 %18.6 %22.9 %18.7 %
13



Reconciliation of GAAP Operating Profit to Company Restaurant Profit
Quarter ended 9/30/2024
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
GAAP Operating Profit (Loss)$339 $251 $91 $1 $(63)$619 
Less:
Franchise and property revenues417 234 150 3 — 804 
Franchise contributions for advertising and other services148 165 87 1 — 401 
Add:
General and administrative expenses86 41 51 11 74 263 
Franchise and property expenses20 6 9 1 — 36 
Franchise advertising and other services expense148 163 89 1 — 401 
Refranchising (gain) loss— — — — (12)(12)
Other (income) expense— — (3)1 (2)(4)
Company restaurant profit (loss)$28 $62 $— $11 $(3)$98 
Company sales$220 $267 $1 $133 $— $621 
Company restaurant margin %12.5 %23.4 %(6.1)%8.3 %N/A15.8 %

Quarter ended 9/30/2023
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
GAAP Operating Profit (Loss) $344 $226 $97 $(2)$(52)$613 
Less:
Franchise and property revenues426 218 150 2 — 796 
Franchise contributions for advertising and other services157 155 90 — — 402 
Add:
General and administrative expenses86 47 51 15 68 267 
Franchise and property expenses15 7 5 1 (1)27 
Franchise advertising and other services expense156 153 91 — — 400 
Refranchising (gain) loss— — — — (19)(19)
Other (income) expense(1)1 (4)(1)4 (1)
Company restaurant profit$17 $61 $— $11 $— $89 
Company sales$117 $256 $2 $135 $— $510 
Company restaurant margin % 14.3 %23.8 %(9.0)%7.8 %N/A17.3 %

14

Year to Date 9/30/2024
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
GAAP Operating Profit (Loss)$986 $709 $278 $(2)$(225)$1,746 
Less:
Franchise and property revenues1,219 678 446 7 — 2,350 
Franchise contributions for advertising and other services427 477 264 2 — 1,170 
Add:
General and administrative expenses253 137 153 38 249 830 
Franchise and property expenses46 22 19 3 — 90 
Franchise advertising and other services expense424 473 270 2 — 1,169 
Refranchising (gain) loss— — — — (31)(31)
Other (income) expense(3)(1)(10)1 3 (10)
Company restaurant profit (loss)$60 $185 $— $33 $(4)$274 
Company sales$488 $775 $5 $399 $— $1,667 
Company restaurant margin % 12.2 %23.9 %(1.9)%8.2 %N/A16.4 %

Year to Date 9/30/2023
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
GAAP Operating Profit (Loss)$975 $658 $292 $(4)$(212)$1,709 
Less:
Franchise and property revenues1,254 637 454 6 — 2,351 
Franchise contributions for advertising and other services473 447 273 1 — 1,194 
Add:
General and administrative expenses265 141 155 41 238 840 
Franchise and property expenses57 21 14 2 1 95 
Franchise advertising and other services expense470 439 273 1 — 1,183 
Refranchising (gain) loss— — — — (40)(40)
Other (income) expense7 2 (7)(1)13 14 
Company restaurant profit$47 $177 $— $32 $— $256 
Company sales$342 $738 $11 $404 $— $1,495 
Company restaurant margin % 13.6 %23.9 %1.2 %8.0 %N/A17.1 %
15

YUM! Brands, Inc.
Segment Results
(amounts in millions)
(unaudited)

    
Quarter ended 9/30/2024KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
Total revenues$785 $666 $238 $137 $— $1,826 
Company restaurant expenses192 205 1 122 3 523 
General and administrative expenses86 41 51 11 74 263 
Franchise and property expenses20 6 9 1 — 36 
Franchise advertising and other services expense148 163 89 1 — 401 
Refranchising (gain) loss— — — — (12)(12)
Other (income) expense— — (3)1 (2)(4)
Total costs and expenses, net446 415 147 136 63 1,207 
Operating Profit (Loss)$339 $251 $91 $1 $(63)$619 

Quarter ended 9/30/2023KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
Total revenues$700 $629 $242 $137 $— $1,708 
Company restaurant expenses100 195 2 124 — 421 
General and administrative expenses86 47 51 15 68 267 
Franchise and property expenses15 7 5 1 (1)27 
Franchise advertising and other services expense156 153 91 — — 400 
Refranchising (gain) loss— — — — (19)(19)
Other (income) expense(1)1 (4)(1)4 (1)
Total costs and expenses, net356 403 145 139 52 1,095 
Operating Profit (Loss)$344 $226 $97 $(2)$(52)$613 


The above tables reconcile segment information, which is based on management responsibility, with our Condensed Consolidated Summary of Results.  Corporate and unallocated expenses comprise items that are not allocated to segments for performance reporting purposes.

The Corporate and Unallocated column in the above tables includes, among other amounts, all amounts that we have deemed Special Items. See Reconciliation of Non-GAAP Measurements to GAAP Results.


16

YUM! Brands, Inc.
Segment Results
(amounts in millions)
(unaudited)
Year to Date 9/30/2024KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
Total revenues$2,134 $1,930 $715 $408 $— $5,187 
Company restaurant expenses428 590 5 366 4 1,393 
General and administrative expenses253 137 153 38 249 830 
Franchise and property expenses46 22 19 3 — 90 
Franchise advertising and other services expense424 473 270 2 — 1,169 
Refranchising (gain) loss— — — — (31)(31)
Other (income) expense(3)(1)(10)1 3 (10)
Total costs and expenses, net1,148 1,221 437 410 225 3,441 
Operating Profit (Loss)$986 $709 $278 $(2)$(225)$1,746 

Year to Date 9/30/2023KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
Total revenues$2,069 $1,822 $738 $411 $— $5,040 
Company restaurant expenses295 561 11 372 — 1,239 
General and administrative expenses265 141 155 41 238 840 
Franchise and property expenses57 21 14 2 1 95 
Franchise advertising and other services expense470 439 273 1 — 1,183 
Refranchising (gain) loss— — — — (40)(40)
Other (income) expense7 2 (7)(1)13 14 
Total costs and expenses, net1,094 1,164 446 415 212 3,331 
Operating Profit (Loss)$975 $658 $292 $(4)$(212)$1,709 


The above tables reconcile segment information, which is based on management responsibility, with our Condensed Consolidated Summary of Results.  Corporate and unallocated expenses comprise items that are not allocated to segments for performance reporting purposes.

The Corporate and Unallocated column in the above tables includes, among other amounts, all amounts that we have deemed Special Items. See Reconciliation of Non-GAAP Measurements to GAAP Results.
17

Notes to the Condensed Consolidated Summary of Results, Condensed Consolidated Balance Sheets
and Condensed Consolidated Statements of Cash Flows
(amounts in millions)
(unaudited)

Amounts presented as of and for the quarters and years to date ended September 30, 2024 and 2023 are preliminary.

(a)Due to their size and volatility, we have reflected as Special Items those refranchising gains and losses that were recorded in connection with market-wide refranchisings.

(b)In April 2023, we completed our exit from the Russia market by selling the KFC business in Russia to Smart Service Ltd. Our GAAP operating results presented herein for the quarter and year to date ended June 30, 2023, respectively, reflect revenues from and expenses to support the Russian operations for KFC prior to the date of sale, within their historical financial statement line items and operating segments. However, given our decision to exit Russia and our pledge to direct any future net profits attributable to Russia subsequent to the date of invasion of Ukraine to humanitarian efforts, we reclassed such net operating profits or losses from the KFC Division segment results to Unallocated Other income (expense). Additionally, we incurred certain expenses related to the disposition of the business and other one-time costs related to our exit from Russia which we recorded within Corporate and unallocated G&A and Unallocated Franchise and property expenses. The resulting net Operating Profit of $2 million and net Operating Loss of $10 million for the quarter and year to date ended September 30, 2023, respectively, has been reflected as a Special Item.

(c)We recorded charges of $11 million and $57 million during the quarter and year to date ended September 30, 2024, respectively, and $3 million and $13 million during the quarter and year to date ended September 30, 2023, respectively, to General and administrative expenses and charges of $1 million during both the quarter and year to date ended September 30, 2024 to Other (income) expense related to a resource optimization program. This program has allowed us to reallocate significant resources to accelerate our digital, technology and innovation capabilities to deliver a modern, world-class team member and customer experience and improve unit economics. We recently expanded the program to identify further opportunities to optimize the Company’s spending and identify additional, critical areas in which to potentially reallocate resources, both with a goal to enable the acceleration of the Company’s growth rate. Costs incurred to date related to the program primarily include severance associated with positions that have been eliminated or relocated and consultant fees. Due to their scope and size, these charges have been reflected as Special Items.

(d)The below table includes the detail of Special Items Tax Benefit:

Quarter endedYear to date
9/30/249/30/239/30/249/30/23
Tax Benefit on Special Items Operating Profit$(2)$— $(15)$(2)
Tax Benefit - Income tax impacts from decision to exit Russia— (4)— (12)
Tax Benefit - Other Income tax impacts recorded as Special— — (4)(22)
Special Items Tax Benefit$(2)$(4)$(19)$(36)

Tax Benefit on Special Items Operating Profit was determined by assessing the tax impact of each individual component within Special Items based upon the nature of the item and jurisdictional tax law.

Other Income Tax impacts recorded as Special in the years to date ended September 30, 2024 and 2023 include benefits related to the reversal of reserves due to the favorable resolution of tax audits in foreign jurisdictions. Such reserves were established in prior years related to income tax liabilities and deferred tax assets originally recorded as Special Items as part of intercompany restructurings of intellectual property. Other Income Tax impacts recorded as Special in the year to date ended September 30, 2023 also include the release of valuation allowances associated with a jurisdiction in which a marketwide refranchising event occurred.
18
v3.24.3
Cover page Document
Nov. 05, 2024
Cover [Abstract]  
Entity Central Index Key 0001041061
Title of 12(b) Security Common Stock, no par value
Entity Incorporation, State or Country Code NC
Entity Registrant Name YUM! BRANDS, INC.
Entity File Number 1-13163
Entity Tax Identification Number 13-3951308
Entity Address, Address Line One 1441 Gardiner Lane,
Entity Address, City or Town Louisville,
Entity Address, State or Province KY
Entity Address, Postal Zip Code 40213
City Area Code (502)
Local Phone Number 874-8300
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Trading Symbol YUM
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Document Type 8-K
Document Period End Date Nov. 05, 2024
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