Yum! Brands, Inc. (NYSE:YUM) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 08:15 am ET


Yum! Brands, Inc. (NYSE:YUM) Q4 2018 Earnings Conference Call Transcript


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Good morning. My name is Zitania and I will be your conference operator today. At this time I would like to welcome everyone to the Yum! Brands Q4 2018 Earnings Release Call. (Operator Instructions) Now I would like to turn the call over to your host Mr. Keith Siegner Vice President Investor Relations Corporate Strategy and Treasurer. Sir, you may begin your conference.

Keith R. Siegner

Thanks Zitania. Good morning everyone and thank you for joining us. On our call today are Greg Creed our CEO; David Gibbs our President Chief Operating Officer and Chief Financial Officer; and Dave Russell our Senior Vice President and Corporate Controller. Following remarks from Greg and David we'll open the call to questions.

Before we get started I'd like to remind you that this conference call includes forward-looking statements. Forward-looking statements are subject to future events and uncertainties that could cause our actual results to differ materially from these statements. All forward-looking statements should be considered in conjunction with the cautionary statements in our earnings release and the risk factors included in our filings with the SEC. In addition please refer to the Investors section of the Yum! Brands website www.yum.com to find disclosures and reconciliations of non-GAAP financial measures that may be used on today's call.

Please note the following regarding our basis of presentation for today's call. First, system-sales results exclude the impact of foreign currency. Second, core operating profit growth figures exclude the impact of foreign currency and special items; third, the revenue recognition accounting standard was prospectively adopted on January 1, 2018.

As a reminder this is a GAAP required change adjusting the timing of recognition of upfront fees received from and incentive payments made to franchisees. The effects of which have no impact on cash. In addition it requires the gross up of revenues and offsetting expenses of advertising funds we consolidate within our income statement. We are broadcasting this conference call via our website.

This call is being recorded and will be available for playback. Please be advised that if you ask a question it will be included in both our live conference and in any future use of the recording. We'd like to make you aware of the following changes in upcoming Yum! investor events. Disclosures pertaining to outstanding debt in our restricted group capital structure will be provided at the time of the Form 10-K filing. First quarter 2019 earnings will be released on May 1, 2019 with a conference call on the same day. And last we ask that you ask one question and one question only. Now I'd like to turn the call over to Mr. Greg Creed.

Greg Creed

Thank you Keith and good morning everyone. It's been a little over two years since we announced a substantial transformation of Yum! Brands and I couldn't be more proud of what we've been able to accomplish since then. Focus on our four growth drivers increased collaboration and a new mindset are clearly fueling improved results. In aggregate for the year