Yum! 1Q15 Earnings Call Notes

Never pleased with decline in EPS, but…

“You can never be pleased when you report an EPS decline for the quarter, but the story behind the numbers gives me even more confidence that we can and will deliver at least 10% EPS growth in 2015”

China sss declined, but business is improving

“Let’s start with China. Same-store sales declined 12% for the quarter. The best I could tell the whole story. The fact is that the business is clearly improving. Same-store sales and customer metrics continue to move in the right direction. ”

Pleased with constant currency growth of 50% in Russia

“I was particularly pleased with the continued impressive growth from our Russia business where system sales grew nearly 50% in constant currency.”

Pizza hut being outperformed by competition in US

“Moving to our Pizza Hut division where our results have admittedly been soft and worse yet we’re being outperformed by the competition. As you know we recently launched a new pizza platform in the U.S. where over half the division’s profits are generated.”

Labor inflation in China was about 10%

“Labor inflation in China was about 10%”

Inflation wont be as bad as we expected

“taking you back to where we were at in New York when we provided guidance around commodities, at the time we were expecting about 2% to 3% at Taco Bell. It’s now looking like it’s going to be flat, closer to flat and that’s because what we’re still expecting inflation in beef it’s not going to be as extreme as we have thought. We’re actually seeing higher deflation for cheese than we had originally expected and we’re also seeing now deflation in chicken, so all of the things are working in our favor.”

We’re a brand building company

“we’re a brand building company and every day each one of our brands in 126 countries we operate is really focused on four things. Making our brands more relevant, making them more engaged, making them all connected and demonstrating that we care.”