Financial Data and Key Metrics Changes - Core operating profit increased by 8% in Q1 2025, reaching $586 million, driven by strong performance from Taco Bell U.S. and KFC International [5][30] - System sales grew by 5%, with same store sales growth of 3% and unit growth of 3% [30] - Reported EPS was $0.90, with an unfavorable tax impact of $0.33 [33] Business Line Data and Key Metrics Changes - Taco Bell U.S. achieved a 9% increase in same store sales and an 11% increase in system sales, with a 16% increase in operating profit [7][17] - KFC International posted low single-digit traffic growth and 5% system sales growth, with a 9% increase in operating profit [10][15] - Pizza Hut experienced a 3% decline in system sales, primarily due to underperformance in the U.S., although international markets showed positive same store sales [19][20] Market Data and Key Metrics Changes - KFC International's same store sales growth was 3%, with notable performance in Canada (6%) and Korea (13%) [16][58] - Taco Bell's digital sales mix reached 42%, with a year-over-year growth of 37% [18][32] - Pizza Hut U.S. faced intense competition but saw sequential gains in revenue and transactions towards the end of Q1 [20][21] Company Strategy and Development Direction - The company is focused on leveraging AI technology through its digital platform, Byte by Yum!, to enhance consumer experiences and operational efficiency [5][24] - Taco Bell is expanding its product offerings and digital channels, aiming for a 10% increase in average unit volumes by 2030 [8] - KFC is modernizing its brand through menu upgrades and innovative partnerships, while also focusing on value-driven offerings [15][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite economic uncertainties, highlighting Taco Bell's position as a value leader [46][47] - The company anticipates an 8% core operating profit growth for 2025, with expectations for stronger performance in the second half of the year [48][62] - Management noted that the geopolitical environment has not negatively impacted consumer behavior towards KFC [56] Other Important Information - The company hosted a global franchise convention, showcasing strong franchisee engagement and commitment to growth [26][38] - Yum! Brands received the Corporate Responsibility Award for integrating responsible business practices into its core strategies [28] - The company is planning to expand its innovative beverage concepts, such as Quench by KFC and Live Mas Cafe by Taco Bell [12][18] Q&A Session Summary Question: Concerns about KFC International's performance amid geopolitical dynamics - Management reassured that KFC International's same store sales growth is widespread and not negatively impacted by geopolitical issues, with strong performance in various markets [56][58] Question: Confidence in full-year guidance and profit growth acceleration - Management expressed confidence in achieving 8% core operating profit growth, citing strong Q1 performance and favorable profit laps expected in the second half [62] Question: Store development outlook amid macroeconomic challenges - Management indicated strong confidence in the development plan, with franchisees optimistic about future growth despite global complexities [66][68] Question: Potential of Byte technology and its future applications - Management highlighted the significant investment in digital technology and the potential for Byte to enhance operational efficiency and profitability across the system [74][75] Question: Sustainability of Taco Bell's strong performance - Management noted that Taco Bell's strong sales trends are expected to continue, driven by innovative offerings and value propositions [96]

Financial Data and Key Metrics Changes - The company reported a core operating profit increase of 8% in the first quarter, reaching $586 million, driven by strong performances from Taco Bell U.S. and KFC International [5][30] - System sales grew by 5%, with same-store sales growth of 3% and unit growth of 3% [30] - Taco Bell's operating profit increased by 16%, while KFC's operating profit grew by 9% [30][32] Business Line Data and Key Metrics Changes - Taco Bell U.S. achieved a 9% increase in same-store sales, with system sales up 11% [8][18] - KFC International reported low single-digit traffic growth and same-store sales growth of 3%, with notable performance in Canada and Korea [11][17] - Pizza Hut experienced a 3% decline in system sales, primarily due to underperformance in the U.S., although international markets showed positive trends [20][21] Market Data and Key Metrics Changes - KFC International's same-store sales growth was 5% when excluding China, with positive trends across all 10 measured markets [56] - In Canada, KFC saw a 6% same-store sales increase, while Korea reported a 13% increase [17] - The U.S. market for Pizza Hut showed sequential gains in revenue and transactions towards the end of the quarter [21] Company Strategy and Development Direction - The company is focused on leveraging AI technology through its digital platform, Byte by Yum!, to enhance consumer experiences and operational efficiency [5][25] - Taco Bell is expanding its digital channels and loyalty programs, aiming for a 10% increase in average unit volumes by 2030 [9] - The company plans to continue its development strategy, targeting 5% unit growth for the year, with a focus on international expansion [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite economic uncertainties, highlighting Taco Bell's position as a value leader [49][50] - The company anticipates an 8% core operating profit growth for the year, with expectations for stronger profit growth in the second half [50][48] - Management noted that the competitive environment remains challenging, particularly for Pizza Hut, but emphasized ongoing innovation and value offerings [21][86] Other Important Information - The company is investing in AI technologies in partnership with NVIDIA to enhance operational performance and consumer engagement [25][90] - The recent global franchise convention showcased strong franchisee sentiment and commitment to growth [39][40] - The company received the Corporate Responsibility Award for integrating responsible business practices into its core strategies [28] Q&A Session Summary Question: Concerns about KFC International's performance - Management reassured that KFC International is recovering well, with widespread sales growth and no significant anti-American sentiment affecting performance [56][58] Question: Confidence in full-year guidance - Management expressed confidence in achieving 8% operating income growth, citing strong Q1 performance and strategic moves to drive sales [61][63] Question: Store development outlook amid macro challenges - Management remains confident in the development plan, noting strong franchisee sentiment and encouraging unit growth despite planned closures [66][69] Question: Byte technology and its future potential - Management highlighted the significant investment in digital technology and the positive impact of Byte on sales and profitability, with plans for further expansion [75][76] Question: Expansion of the Saucy concept - Management is pleased with the initial performance of the Saucy concept and is exploring avenues for expansion while ensuring supply chain and real estate scalability [78][79] Question: Future growth potential for KFC and Pizza Hut - Management acknowledged the challenges facing Pizza Hut but expressed optimism about recovery and growth potential for both KFC and Pizza Hut internationally [85][88]

Core Insights - Yum Brands reported mixed quarterly results, with Pizza Hut's same-store sales declining more than expected, impacting overall performance [1][2] - The company’s net income for the first quarter was $253 million, down from $314 million a year earlier, translating to earnings of 90 cents per share [1] - Net sales increased by 12% to $1.79 billion, but fell short of the expected $1.85 billion [6] Financial Performance - Adjusted earnings per share were $1.30, slightly above the expected $1.29 [6] - Same-store sales across all brands rose by 3%, with Taco Bell leading with a 9% increase, surpassing estimates [2][3] - KFC's same-store sales grew by 2%, exceeding the 1.4% estimate, but its U.S. sales declined by 1% [3][4] Brand-Specific Performance - Pizza Hut's same-store sales fell by 2%, worse than the anticipated 0.1% decline, with U.S. sales down 5% and international sales flat [2] - KFC's performance in the U.S. is struggling, with competition from rivals like Wingstop and Raising Cane's [4] Digital Sales - Digital orders accounted for 55% of Yum's total sales this quarter, indicating a significant shift towards online and mobile ordering [4] Leadership Changes - CEO David Gibbs announced plans to retire in the first quarter of 2026, with the board currently searching for a successor [5]

Financial Performance - Yum! Brands reported first-quarter GAAP EPS of $0.90, with EPS excluding Special Items at $1.30, reflecting a 13% increase year-over-year [2]. - Total revenues for Q1 2025 reached $1,787 million, a 12% increase from $1,598 million in Q1 2024 [29]. - Company sales increased by 28% to $607 million in Q1 2025, compared to $474 million in Q1 2024 [29]. - Net income for Q1 2025 was $253 million, down 19% from $314 million in Q1 2024 [29]. - Operating profit for the company was $548 million, a 5% increase from $520 million in Q1 2024 [29]. - Core Operating Profit grew by 8%, with GAAP Operating Profit increasing by 5% [3]. - Core Operating Profit rose to $586 million, reflecting a 7.7% increase from $544 million in the prior year [51]. - Diluted EPS excluding Special Items was $1.30, compared to $1.15 for the same quarter last year, marking a 13.0% increase [54]. - Total revenues for Q1 2025 reached $1,787 million, a 11.8% increase from $1,598 million in Q1 2024 [57]. - Operating profit for Q1 2025 was $548 million, compared to $520 million in Q1 2024, reflecting a 5.4% increase [57]. Division Performance - Taco Bell U.S. achieved 9% same-store sales growth, while KFC International reported 7% unit growth year-over-year [3]. - KFC division reported a 22% increase in total revenues to $773 million, up from $632 million in Q1 2024 [32]. - Taco Bell division achieved total revenues of $657 million, a 10% increase from $598 million in Q1 2024 [35]. - Pizza Hut division's total revenues decreased by 3% to $231 million, down from $238 million in Q1 2024 [38]. - Taco Bell Division system sales reached $3.98 billion, an 11% increase, with same-store sales growth of 9% [13]. - KFC Division opened 528 gross new restaurants across 52 countries, with system sales of $8.34 billion, a 3% increase [10]. - Pizza Hut Division experienced a 4% decline in system sales to $3.03 billion, with same-store sales down by 2% [14]. Expenses and Costs - Company restaurant expenses totaled $520 million in Q1 2025, up from $400 million in Q1 2024, indicating a 30% increase [57]. - General and administrative expenses were $302 million in Q1 2025, compared to $286 million in Q1 2024, a 5.6% increase [57]. - Franchise advertising and other services expense amounted to $396 million in Q1 2025, up from $367 million in Q1 2024, a 7.9% increase [57]. - Total costs and expenses for Q1 2025 were $1,239 million, an increase from $1,078 million in Q1 2024, reflecting a 14.9% rise [57]. Cash Flow and Assets - Net Cash Provided by Operating Activities increased to $404 million, up 11.3% from $363 million year-over-year [43]. - Total assets as of March 31, 2025, were $6,659 million, a slight decrease from $6,727 million at the end of 2024 [41]. - Long-term debt remained stable at $11,327 million as of March 31, 2025, compared to $11,306 million at the end of 2024 [41]. Strategic Initiatives - The company announced a collaboration with NVIDIA to integrate AI technologies into its restaurants globally [9]. - The company aims to accelerate growth through resource reallocation and optimization strategies [64]. - The company recorded charges of $17 million in Q1 2025 related to a resource optimization program aimed at enhancing digital and technology capabilities [64]. - Approximately $7 million in charges were recorded in Q1 2025 for relocating brand headquarters to improve collaboration [64]. Shareholder Returns - The company declared a dividend of $0.71 per common share, up from $0.67 in the previous year [29].

Core Viewpoint - Yum! Brands, Inc. is set to report its first-quarter 2025 results on April 30, with expectations of strong revenue growth driven by same-store sales and brand performance, particularly from KFC [1][3]. Group 1: Earnings Estimates - The Zacks Consensus Estimate for earnings per share is $1.29, reflecting a 12.2% increase from the prior-year quarter [2]. - Revenue estimates stand at $2.32 billion, indicating a growth of 15.1% from $1.84 billion in the same quarter last year [2]. Group 2: Growth Drivers - Key factors contributing to Yum's anticipated results include higher same-store sales, ongoing expansion in the U.S. and internationally, and continued menu innovation [3]. - The adoption of an AI-enhanced ordering system is expected to improve operational efficiency and customer experience, leading to increased sales [4]. Group 3: Brand Performance - Revenue predictions for KFC, Taco Bell, and Habit Burger are expected to rise by 15%, 10.2%, and 15.8%, respectively, with KFC projected to generate $726.6 million [5]. - Pizza Hut revenues are forecasted to increase by 6.4% to $253.3 million [5]. Group 4: Cost Pressures - An increase in employee wages, benefits, and other operating costs is anticipated to pressure Yum's margins, with total costs and expenses expected to rise by 14.2% year-over-year [6]. Group 5: Earnings Prediction Model - The current model does not predict an earnings beat for Yum! Brands, as it has an Earnings ESP of -0.29% and a Zacks Rank of 3 [7][8].

KFC's Chicken & Waffles returns for the first time in over five years, just in time for Mother's Day. The fan- favorite combo features crispy fried chicken, sweet Liège-style waffles, and Mrs. Butterworth's syrup, starting at $7. KFC's new Strawberry & Crème Pie Poppers are a sweet treat perfect for mom—flaky, golden, and filled with strawberry and cream. LOUISVILLE, Ky., April 28, 2025 /PRNewswire/ -- KFC® is bringing back its popular sweet and savory menu item, Chicken & Waffles, for the first time in ove ...

Group 1 - KFC organized the "Little Fried Chicken Hero" food station experience event in collaboration with Guilin Daily's young reporters to promote sustainable development concepts of "food waste reduction and low-carbon environmental protection" [1][3] - The event allowed children to experience the scientific management process of surplus food, including inventory counting, standardized packaging, and safe storage, highlighting that surplus food is not simply discarded but properly managed [3] - Participants engaged in a packaging competition and creative menu design, which fostered understanding of food conservation and sustainability through interactive learning [3] Group 2 - Three KFC locations in Guilin, including Lian Da, Ba Li Jie, and Wan Fu, are actively managing surplus food to support community welfare [3] - Children created dishes such as "Original Flavor Chicken Soup" and "Coke Chicken Wings" using surplus ingredients, demonstrating how food can be transformed into delicious meals through creativity [3] - The interactive approach of "small hands pulling big hands" effectively educated children on methods and practices for food conservation [3]

The upcoming report from Yum Brands (YUM) is expected to reveal quarterly earnings of $1.29 per share, indicating an increase of 12.2% compared to the year-ago period. Analysts forecast revenues of $1.84 billion, representing an increase of 15.1% year over year.The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Ahead of ...

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]

Core Concept - Pizza Hut introduces "Pizza Caviar," a unique pepperoni-flavored caviar-style product, aiming to capitalize on the current caviar trend in the food industry [1][2][3] Product Innovation - Pizza Caviar is designed to replicate traditional caviar's appearance and texture, using pepperoni-flavored water and agar agar-based pearls [2][4] - The product is featured in the new Pizza Caviar Bump Box, which includes a Personal Pan Pizza and a choice of wings or fries, all topped with Pizza Caviar [2][3] Marketing Strategy - The Chief Marketing Officer of Pizza Hut emphasizes the brand's commitment to innovation and indulgence while staying true to popular flavors [3] - The Pizza Caviar Bump Box will be available exclusively at a specific New York City location for a limited time, highlighting a targeted marketing approach [3][4] 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]