Benzinga | Oct 28, 2021 01:55PM EDT

Yum! Brands Q3 Earnings Beat Estimates Fed By KFC, Taco Bell Contribution

* Yum! Brands Inc (NYSE:YUM) reported third-quarter FY21 revenue growth of 11% year-on-year, to $1.61 billion, beating the analyst consensus of $1.59 billion.

* Total revenues from the KFC division rose 18% to $692 million, Pizza Hut improved 2% to $247 million, and the Taco Bell division rose 6% to $534 million.

* Same-store sales for the quarter grew 5%. Same-store sales at KFC Division increased 6%, and Pizza Hut rose 4%.

* Worldwide system sales excluding foreign currency translation grew 8%, with KFC at 11%, Taco Bell at 8%, and Pizza Hut at 4%.

* "Our 5% same store sales growth for the third quarter, or 3% same-store sales growth on a 2-year basis, demonstrates the resilience of our diversified global business model despite the headwind of the Delta variant in certain key markets," said CEO David Gibbs.

* Franchise and property revenues increased 12% to $716 million, and Company sales rose 5% Y/Y to $513 million. Revenue from Franchise contributions for advertising and other services improved 17% to $377 million.

* Total costs and expenses increased 10% Y/Y to $1.1 billion. The operating margin was 32.8%, and operating income for the quarter rose 12% to $527 million.

* The company held $1 billion in cash and equivalents as of September 30, 2021. Net cash provided by operating activities totaled $1.3 billion.

* Adjusted EPS of $1.22 beat the analyst consensus of $1.08.

* Price Action: YUM shares are trading lower by 0.33% at $125.39 on the last check Thursday.