=Yum! Brands (YUM) reported earnings on Wed 30 Oct 19 (b/o)

Yum! Brands misses by $0.14, reports revs in-line

Reports Q3 (Sep) earnings of $0.80 per share, excluding non-recurring items, $0.14 worse than the S&P Capital IQ Consensus of $0.94; revenues fell 3.7% year/year to $1.34 bln vs the $1.35 bln S&P Capital IQ Consensus. Worldwide Comps +3%.

Comps: KFC +3%, Pizza Hut Even, Taco Bell +4%

Worldwide system sales excluding foreign currency translation grew 8%, with KFC at 8%, Pizza Hut at 7% and Taco Bell at 7%. Adjusting the prior year base to include Telepizza, system sales growth excluding foreign currency translation would have been 6% worldwide and 2% for the Pizza Hut Division.

Unclear whether the co reaffirmed FY 19 Adj. EPS target due to mark-to-market adjustment for Grubhub (GRUB) investment.

• "At this time, we are unable to forecast any Special Items or Grubhub mark-to-market adjustments for the remainder of 2019 beyond amounts already recognized through September 30, 2019. The full year forecasted impacts of FX and the 53rd week and actual year-to-date impacts of Special Items and Grubhub mark-to-market adjustments on our 2019 Adjusted EPS Target are shown below. This impact of FX has been determined as the difference in translating our current local currency forecasts for 2019 at current FX forward rates and FX rates at the time the 2019 Adjusted EPS target was determined in 2016."