On August 2^nd YUM! Brands (YUM) reported on Q2 of FY 2023, ending June 30^th. For the period, the Company posted net earnings of $418 million on revenue of $1,687 million with a diluted EPS of $1.46.  Comparative values for Q2 of fiscal 2022 were net earnings of $224 million on revenue of $1,636 million with a diluted EPS of $0.77.

For the quarter worldwide systems sales growth attained 13 percent with same-store sales growth attaining 9 percent with digital sales up 45 percent to $7 billion.

Division performance for Q2 included:-

• The KFC Division comprising 28,500 restaurants posted a 13 percent growth in same-store sales; system-wide sales of $8,298 million and company revenue and franchise fees combining to $416 million.  The KFC division generated an operating profit of $326 million achieving an operating margin of 47.7 percent.
• The Pizza Hut Division comprising 19,242 restaurants achieved a four percent growth in same-store sales.  System-wide sales amounted to $3,201 million with company revenue and franchise fees of $149 million.  The Pizza Hut Division generated an operating profit of $91 million and attained an operating margin of 37.3 percent.
• The Taco Bell Division comprising 8,320 restaurants posted a four percent increase in same-store sales with system wide revenue of $3,760 million.  Revenue from company stores, franchise fees and other incoming including advertising amounted to $218 million with an operating profit of $228 million attaining an operating margin of 36.8 percent.
• The recently acquired Habit Burger chain reported flat same-store sales growth with a nine percent increase in system sales

In commenting on results David Gibbs, CEO stated, "Our broad-based momentum continued in the second quarter with system sales growth of 13 percent owing to 9 percent same-store sales growth and 6 percent unit growth. KFC, our largest division, led the quarter with an astounding 19 percent system sales growth. An impressive 1,025 gross new units this quarter and nearly 30 percent digital sales growth contributed to our robust system sales growth. I remain confident we are well positioned to thrive in any consumer spending environment given the broad consumer appeal of our iconic brands, including our ‘craveable’ products, compelling value and easy experiences. With our strong year-to-date results and continued momentum, we expect to deliver full year 2023 results well above our long-term growth algorithm for system sales and core operating profit growth.”

On April 17, 2023, Yum! Brands completed its exit from the Russian market by selling its KFC business in the nation to Smart Service Ltd., including all Russian KFC restaurants, operating system, master franchise rights and the trademark for the Rostik's brand. With the completion of the transaction, YUM now has terminated any corporate presence in Russia.

On June 30^th 2023 Yum Brands posted total assets of $5,848 million including goodwill and intangibles of $1,010 million against long-term debt and other liabilities of $13,517 million. Yum Brands! had a market capitalization of $38,190 million on June 30^th 2023.  The share has traded over the past 52 weeks in a range of $103.97 to $143.25 with a 50-day moving average of $134.91 and with a forward P/E of 26.2.  On a trailing 12-month basis, operating margin was 32.2 percent and profit margin 20.3 percent with a return on assets of 24.1 percent.  YUM! is held primarily by institutions that collectively hold 80.6 percent of equity. Pre-release on August 2^nd YUM closed at $134.96. On Thursday 3^rd YUM closed at $135.62, up 0.5 percent.