Overview

* Yum! Brands ( YUM ) Q3 adjusted EPS rose 15% yr/yr, beating analyst expectations

* Company initiates strategic review for Pizza Hut to maximize long-term value

* Worldwide system sales grew 5%, led by Taco Bell at 9% and KFC ( YUM ) at 6%

Outlook

* Company to complete acquisition of 128 Taco Bell restaurants in Q4

* Company targets 5% unit growth and 7% system sales growth long-term

Result Drivers

* TACO BELL GROWTH - Taco Bell led system sales growth with a 9% increase, driven by strong same-store sales and international expansion

* KFC EXPANSION - KFC's ( YUM ) unit growth of 6% was supported by opening 760 new restaurants across 60 countries

* DIGITAL SALES RECORD - Record digital sales reached $10 bln, with a 60% digital mix, contributing to overall sales growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $1.58 $1.48

Adjusted (26

EPS Analysts

)

Q3 EPS $1.41

Q3 KFC 44.60%

Operatin

g Margin

Q3 KFC $392 mln

Operatin

g Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 21 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy."

* Wall Street's median 12-month price target for Yum! Brands Inc ( YUM ) is $160.00, about 12.9% above its November 3 closing price of $139.38

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)