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3 Reasons Growth Investors Will Love Yum (YUM)
ZACKS· 2025-04-15 17:45
Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Yum Brands (YUM) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being highly desirable [3] - Yum's historical EPS growth rate is 10.3%, with projected EPS growth of 9.3% this year, significantly outperforming the industry average of 5% [4] Group 3: Asset Utilization - Yum's asset utilization ratio (sales-to-total-assets ratio) is 1.17, indicating higher efficiency in generating sales compared to the industry average of 0.97 [5] Group 4: Sales Growth - Yum's sales are expected to grow by 8.6% this year, which is substantially higher than the industry average of 3.6% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, and Yum has seen a 0.5% upward revision in current-year earnings estimates over the past month [7][8] Group 6: Overall Assessment - Yum has achieved a Growth Score of B and a Zacks Rank of 2, indicating it is a potential outperformer and a solid choice for growth investors [10]
PIZZA HUT® CREATES A FIRST-OF-ITS-KIND INNOVATION: "PIZZA CAVIAR"
Prnewswire· 2025-04-09 10:02
Core Concept - Pizza Hut introduces "Pizza Caviar," a unique product that reimagines the caviar trend by creating pepperoni-flavored caviar-style pearls, aiming to blend indulgence with familiar flavors [1][3]. Product Innovation - Pizza Caviar is designed to replicate traditional caviar's appearance and texture, offering a bold, smoky pepperoni flavor without using fish [2]. - The product is featured in the new Pizza Caviar Bump Box, which includes a cheese Personal Pan Pizza and a choice of three boneless wings or fries, all topped with the pepperoni-flavored "Pizza Caviar" [2]. Marketing Strategy - The Chief Marketing Officer of Pizza Hut emphasizes the brand's commitment to pushing culinary boundaries and capitalizing on current food trends [3]. - The Pizza Caviar Bump Box will be available exclusively at a specific Pizza Hut location in New York City for a limited time, from April 10th to April 12th, 2025 [3]. Company Background - Pizza Hut, a subsidiary of Yum! Brands, has a long history of innovation in the pizza industry, with over 19,000 restaurants in more than 100 countries [6]. - The company has been a pioneer in digital ordering, with over half of its transactions coming from digital platforms [6].
PIZZA HUT® LAUNCHES NEW TV SPOT AND BRAND CAMPAIGN FEATURING "PETER ZAHUT" - THE ULTIMATE DELIVERY GUY WHO BRINGS THE GOOD TIMES - ALONGSIDE CHEESY BITES PIZZA & NEW RANCH LOVER'S FLIGHT
Prnewswire· 2025-03-26 10:02
Core Insights - Pizza Hut launches a new brand campaign featuring "Peter Zahut," the ultimate delivery guy, aimed at enhancing the customer experience during March Madness [1][2] - The campaign emphasizes not just the pizza but the joy and fun associated with sharing pizza during special moments [2] - New culinary innovations include the return of Cheesy Bites Pizza and the introduction of the Ranch Lover's Flight, enhancing the dipping experience [3] Product Innovations - Cheesy Bites Pizza features 28 pull-apart, cheese-filled bites, designed for dipping and sharing [3] - The Ranch Lover's Flight includes three exclusive dipping sauces: Ultimate Ranch, Chipotle Ranch, and Pepperoni Ranch, enhancing the overall pizza experience [3][6] - The new offerings are available for a limited time, starting March 26, 2025, coinciding with the NCAA Sweet 16 [1][4] Marketing Strategy - The campaign aims to spotlight the good times and moments of joy that come with pizza, aligning with the excitement of basketball events [2] - The marketing approach leverages the cultural significance of March Madness to engage customers and drive sales [1][2] - The campaign is supported by a nationwide TV spot debuting during the NCAA tournament [1][4]
Here's Why Investors Should Retain Yum! Brands Stock Now
ZACKS· 2025-03-21 17:55
Core Viewpoint - Yum! Brands, Inc. (YUM) is positioned to benefit from digital transformation, product innovation, and expansion efforts, despite facing an uncertain macroeconomic environment [1] Factors Driving Growth - Year-to-date, Yum! Brands' shares have increased by 17.7%, outperforming the industry's growth of 1.4%, driven by a strategic mix of value offerings and digital innovation [2] - In Q4 2024, worldwide comparable sales at Yum! Brands rose by 1% year-over-year, recovering from a 2% decline in the previous quarter, with strong recoveries noted in the Middle East and solid performances in Africa, Latin America, and Canada [3] - Looking ahead to 2025, Yum! Brands plans to enhance market penetration by expanding product offerings and refining pricing strategies, expecting continued same-store sales improvement [4] Digital Transformation and Customer Engagement - Yum! Brands is enhancing its digital ecosystem, with digital sales growing by 15% year-over-year to over $30 billion in 2024, supported by increased kiosk adoption and successful loyalty initiatives [5] - The deployment of the Byte digital ordering platform has led to over 50% growth in digital transactions in certain markets, with plans to expand this platform to five more markets in 2025 [6] Expansion Efforts - In 2024, Yum! Brands opened 4,500 new units globally, with 2,900 of those being KFC locations, and Taco Bell showing strong growth across all income segments in the U.S. [8] - The company is focusing on international expansion, particularly in China, India, and Latin America, while testing innovative formats like Saucy by KFC and Live Más Cafe by Taco Bell [8] Concerns - Yum! Brands faces macroeconomic challenges, including global economic uncertainty and shifts in consumer sentiment, which have impacted performance, especially in regions affected by geopolitical conflicts [9]
KFC® Drops New "Dunk It Bucket" Featuring Mashed Potato Poppers - It's a Feast Made for Dipping
Prnewswire· 2025-03-17 13:00
Core Concept - KFC has launched a new product called the "Dunk It Bucket," which is the brand's first new bucket in nearly a decade, featuring hand-breaded Original Recipe Tenders, Secret Recipe Fries, and new Mashed Potato Poppers, available nationwide starting March 17, 2025 [1][4]. Product Details - The Dunk It Bucket includes hand-breaded Original Recipe Tenders, Secret Recipe Fries, and crispy Mashed Potato Poppers, with a starting price of $7 [2][4]. - Mashed Potato Poppers are described as crunchy on the outside and creamy on the inside, available either as part of the Dunk It Bucket or à la carte [3][4]. - The Double Dunk It Bucket is available for $25, which includes 10 tenders, 2 individual fries, 10 mashed potato poppers, 6 sauces, and 4 biscuits [7]. Sauce Options - The Dunk It Bucket offers a variety of sauce options, including Warm Gravy, Comeback Sauce, Honey BBQ, Honey Mustard, Sticky Chicky Sweet and Sour Sauce, Classic Ranch, and Buffalo Ranch [8]. Marketing and Promotions - The new menu items coincide with the college basketball tournament, promoting a "sauce bracket" theme for fans [5]. - KFC is also offering limited-edition "KFC Dunk It" merchandise, including a mini basketball hoop and apparel, to enhance the promotional campaign [5]. Ordering and Rewards - Customers can order the Dunk It Bucket in-store, on KFC.com, or through the KFC app, with KFC Rewards members earning double points on these orders [6][9].
PIZZA HUT® REDEFINES CHARCUTERIE BOARDS WITH PIZZA CHARCUTERIE FOR PI DAY
Prnewswire· 2025-03-11 11:02
Because Meat and Cheese Had a Good RunPLANO, Texas, March 11, 2025 /PRNewswire/ -- Move over, salami and brie—Pizza Hut is taking charcuterie to the next level just in time for Pi Day (3.14). Introducing Pizza Charcuterie, a customizable, Instagram-worthy pizza board designed for the ultimate social gathering. Whether hosting a Pi Day celebration, a watch party, or just looking for an easy (but impressive) way to elevate your get-together, Pizza Hut's new Pizza Charcuterie is the ultimate crowd-pleaser. Thi ...
CSE Bulletin: Delist - Komo Plant Based Foods Inc. (YUM.X)
Newsfile· 2025-03-05 19:15
Group 1 - The common shares of Komo Plant Based Foods Inc. will be delisted from the CSE at market close on March 5, 2025 [1][2] - Komo Plant Based Foods is currently suspended [1][2] Group 2 - The symbol for Komo Plant Based Foods on the CSE is YUM.X [3]
Yum!(YUM) - 2024 Q4 - Annual Report
2025-02-19 22:26
Company Overview - YUM operates over 61,000 restaurants across more than 155 countries, with system sales totaling $65.466 billion for the year ended December 31, 2024[16]. - The company has approximately 1,500 franchisees, with 35% of over 60,000 franchised units operating under master franchise agreements, particularly in mainland China[27]. - The company has around 60,000 franchise restaurants globally, employing over 1 million people[50]. - The company relies on franchisees for 98% of its restaurant operations, making franchisee performance critical for growth[61]. - The company has limited control over franchisee operations, which could impact royalty and fee revenues if franchisees struggle[62]. - The company terminated franchise agreements with a Turkish operator for failing to meet brand standards on January 8, 2025[67]. - The company’s growth strategy is dependent on the successful opening and profitable operation of new restaurants by franchisees[69]. Brand Performance - KFC, Taco Bell, and Pizza Hut are global leaders in their respective categories, with KFC having 31,981 units and system sales of $34.452 billion, representing 53% of total system sales[17]. - The KFC Division operates in 150 countries with 31,981 units, 99% of which are franchised, contributing significantly to YUM's overall performance[17]. - Taco Bell has 8,757 units across 33 countries, with system sales of $17.193 billion, representing 26% of total system sales[17]. - Pizza Hut operates 20,225 units in 111 countries, achieving system sales of $13.108 billion, also primarily through franchising[17]. - Habit Burger & Grill, with 383 units in 3 countries, generated system sales of $713 million, indicating growth potential in the fast-casual segment[17]. Financial Performance - Total revenues for 2024 reached $7.549 billion, a 7% increase from $7.076 billion in 2023[211]. - Diluted EPS for 2024 was $5.22, a decrease of 7% compared to $5.59 in 2023, while EPS excluding special items increased by 6% to $5.48[209]. - Operating profit for 2024 was $2.403 billion, reflecting a 4% increase from $2.318 billion in 2023[211]. - Franchise revenues for 2024 were $3.295 billion, a slight increase of 1% from $3.247 billion in 2023[211]. - Company sales for 2024 reached $2,552 million, up from $2,142 million in 2023, representing a growth of 19.2%[213]. - Franchise sales increased to $62,914 million in 2024, compared to $61,647 million in 2023, marking a growth of 2.1%[213]. - Total system sales for 2024 were $65,466 million, a rise from $63,789 million in 2023, reflecting an increase of 2.6%[213]. Operational Challenges - The company faces risks related to food safety and public health conditions, which could adversely affect operations and growth prospects[57][58]. - The company is subject to various federal, state, and local regulations affecting its business operations[46][47]. - Labor shortages and increased labor costs are ongoing challenges, affecting the company's ability to attract and retain qualified employees[120]. - The company has experienced an increase in food prices and other operating costs, which are expected to continue affecting operational results due to price volatility in raw materials[123]. - The company has taken actions to manage inflationary increases, including raising food prices and negotiating favorable terms with suppliers, but has not always been able to pass on the full cost increases to customers[124]. Technology and Digital Initiatives - Digital sales reached $33 billion in 2024, accounting for over 50% of overall system sales, highlighting the importance of technology in operations[35]. - The implementation of the Byte by Yum! platform aims to enhance operational efficiency and customer experience through AI-driven solutions[34]. - The company is investing significantly in digital and technology initiatives, including AI, to enhance customer experience and operational efficiency[103]. - The company plans to leverage digital and technology to improve customer experiences and drive growth through its Recipe for Good Growth strategy[192]. Risks and Compliance - The company faces risks related to global operations, including political instability, regulatory uncertainties, and economic conditions in various countries[81]. - The company is subject to cybersecurity risks, including ransomware attacks, which could disrupt operations and result in significant costs[87]. - A ransomware attack in January 2023 temporarily closed fewer than 300 restaurants and resulted in data being taken from the company's network[90]. - The company must comply with evolving data privacy laws, including the EU's GDPR, which impose strict requirements and potential penalties for noncompliance[96]. - The company faces risks related to the integration of acquired companies and the realization of expected synergies, which could adversely affect its growth strategy[77]. Market and Economic Factors - The company faces risks related to consumer discretionary spending, influenced by macroeconomic conditions such as inflation and elevated interest rates[147]. - Any significant deterioration in U.S.–China relations could adversely affect the company's financial results due to potential impacts on Yum China's business[76]. - Fluctuations in currency exchange rates, particularly the value of the U.S. dollar against the Chinese Renminbi, could materially impact the company's reported earnings and royalty payments[84]. - The company has significant exposure to the Chinese market through its largest franchisee, Yum China, which subjects it to various risks including political, financial, and social instability[75]. Legal and Regulatory Matters - The company is regularly involved in legal proceedings that could increase expenses and divert management attention, impacting financial results[135]. - Changes in laws and regulations, including those related to labor and employment, could adversely affect the company's operations and growth prospects[136]. - Tax matters, including changes in tax rates or laws, could impact the company's financial results and growth prospects[139]. - The company is subject to a potential 15% global minimum tax under the OECD's Pillar Two initiative, which may increase tax compliance and reporting costs[141]. Employee and Human Capital - As of December 31, 2024, the company employed approximately 40,000 persons, with 23,000 in the U.S. and 17,000 internationally[49]. - Approximately 85% of the company's employees work in restaurants, with 85% of U.S. restaurant employees being part-time[49]. - The company emphasizes human capital management as a key driver of brand performance and franchise success[52]. - The company faces challenges in recruiting and retaining qualified employees, which may lead to reduced operating hours and negatively impact customer experience[122].
KFC is shifting its US headquarters from Kentucky to Texas
Business Insider· 2025-02-19 04:48
Core Points - KFC is relocating its US headquarters from Louisville, Kentucky to two new locations in Plano, Texas and Irvine, California [1][2] - The move aims to enhance collaboration among brands and employees, while maintaining corporate offices in Louisville [2][3] - Approximately 100 KFC US corporate roles will be relocated over the next six months, with an additional 90 remote employees returning to the office over the next 18 months [3] Company Overview - Yum Brands, the parent company of KFC, operates four major food and beverage chains: KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill [3] - KFC has over 4,100 stores in the US and more than 30,000 globally across over 145 countries [4] - The company reported an 8% global sales growth in the fourth quarter, with KFC's sales increasing by 6% [4]
KFC moves U.S. headquarters from Kentucky to Texas
CNBC· 2025-02-18 20:34
KFC is leaving Kentucky.The fried chicken chain's U.S. headquarters will move from Louisville, Kentucky, to Plano, Texas, owner Yum Brands said Tuesday.About 100 KFC U.S. employees will be required to relocate over the next six months.The relocation is part of Yum's broader plan to have two corporate headquarters: one in Plano, the other in Irvine, California. KFC and Pizza Hut's global teams are already based in Plano, while Taco Bell and the Habit Burger & Grill's teams are located in Irvine.Additionally, ...