Yum! Brands
Q3 2022 Earnings Call
Nov 02, 2022, 8:15 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Hello, everybody, and welcome to today's Yum! Brands, Inc. 2022 third quarter earnings call. My name is Drew, and I'll be coordinating your call today. [Operator instructions] I'm now going to hand over to Gavin Fielder, chief strategy officer and interim head of investor relations, to begin.
Please go ahead.
Gavin Felder -- Interim Head of Investor Relations
Thanks, operator. Good morning, everyone, and thank you for joining us. As a reminder, I will be covering for Jodi Dyer while she is out on maternity leave. On our call today are David Gibbs, our CEO; Chris Turner, our CFO; and Dave Russell, our senior vice president and corporate controller.
Following remarks from David and Chris, we'll open the call to questions. Before we get started, I would like to remind you that this conference call includes forward-looking statements that are subject to future events and uncertainties that could cause our actual results to differ materially from these statements. All forward-looking statements are made only as of the date of this announcement and 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 our earnings releases and relevant sections of our filings with the SEC to find disclosures and definitions of non-GAAP financial measures and other metrics that may be used on today's call, as well as reconciliations of non-GAAP financial measures.
Please note that during today's call, all system sales growth and operating profit growth results exclude the impact of foreign currency. Next, I'll provide an update on the financial reporting treatment related to our exit from Russia. As a reminder, as of the beginning of the second quarter, we elected to remove the Russia business from key performance metrics. This negatively impacted our third quarter unit growth by 2 percentage points and our system sales growth by 3 percentage points.
Additionally, these units were removed from our same-store sales calculations and thus do not impact same-store sales results for the third quarter. For the purposes of this call, all references to system sales growth and unit growth results for the quarter are adjusted to remove our Russia business from the prior year base. We continue to include Russia in GAAP measures for KFC, including royalty revenue and expenses to support the Russia business and expenses incurred relating to the transfer of ownership of the business. As a result of our decision to exit our Russia business, we have reclassed net operating profits from the operating segments subsequent to the start of the conflict to corporate and unallocated and reflected as a special item within the other income and expense line.