Financial Data and Key Metrics Changes - The company achieved a core operating profit growth of 8% for the full year, reflecting resilience amid macroeconomic challenges [38][49] - System-wide sales grew by 5% in Q4, driven by 5% net new unit growth and 1% same-store sales growth [41] - Digital sales increased approximately 15% to over $30 billion, highlighting the effectiveness of the digital-first approach [31][32] Business Line Data and Key Metrics Changes - Taco Bell US reported a full year system sales increase of 6%, with same-store sales rising 5% in Q4, significantly outperforming the U.S. industry [18][19] - KFC International experienced a 3% system sales growth for the full year, with same-store sales flat year-over-year but improving to plus 1% in Q4 [15][16] - Pizza Hut's full year system sales declined by 1%, but same-store sales growth improved by 300 basis points sequentially in Q4 [22][41] Market Data and Key Metrics Changes - In the Middle East, KFC saw a strong recovery in transactions, with same-store sales increasing significantly in Q4 [42][76] - Latin America achieved a 6% year-over-year same-store sales increase in Q4, driven by value promotions [17] - Africa reported a 9% increase in same-store sales, attributed to effective marketing strategies [16] Company Strategy and Development Direction - The company is focused on enhancing digital convenience and engagement through its proprietary technology platform, Byte by Yum [11][30] - Strategic initiatives include expanding product offerings and refining pricing strategies to deepen market penetration [17][18] - The company aims to modernize consumer experiences and drive innovation through new concepts like Saucy by KFC and Live Más Cafe at Taco Bell [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of international markets and the overall health of franchisees, particularly in KFC [75][80] - The company anticipates another strong year of core operating profit growth, targeting at least 8% in 2025 [70][86] - Management acknowledged near-term headwinds but remains optimistic about brand momentum and sales recovery in affected markets [67][70] Other Important Information - The company plans to increase its quarterly dividend to $0.71 per share and has returned $1.2 billion to shareholders through dividends and share buybacks [64][65] - The company is committed to sustainability initiatives, including improving packaging recyclability and participating in reusable cup pilots [36][37] Q&A Session Summary Question: Health of international franchisees and growth trajectory - Management noted improvements in international markets, with KFC's system sales growth in unimpacted markets at 9% for the full year and 10% in Q4 [76][78] Question: 2025 core operating profit growth algorithm - Management indicated confidence in achieving the 8% core operating profit growth target, driven by strong performances from KFC International and Taco Bell US [86] Question: G&A outlook long-term - Management expects G&A as a percentage of system sales to decrease over time, with a low single-digit percentage increase anticipated for 2025 [90][91] Question: KFC US business improvements under new leadership - Management expressed excitement about the new KFC leadership and plans to modernize the consumer experience and enhance digital capabilities [97][98] Question: Technology strategy and Byte by Yum - Management highlighted the advantages of an integrated technology platform, which simplifies operations and enhances franchisee capabilities [102][106] Question: Attracting and retaining technology talent - Management emphasized the company's strong culture and growth opportunities as key factors in attracting top technology talent [126]

Yum Brands (YUM) reported $2.36 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 16%. EPS of $1.61 for the same period compares to $1.26 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.32 billion, representing a surprise of +1.80%. The company delivered an EPS surprise of +1.90%, with the consensus EPS estimate being $1.58.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stree ...

Financial Data and Key Metrics Changes - The company achieved full year core operating profit growth of 8%, reflecting the resilience of its business model and growth strategy [7][27] - System-wide sales grew 5% in Q4, driven by 5% net new unit growth and 1% same store sales growth [29] - Core operating profit for the fourth quarter was $1.52 per share, with a 4% increase in EPS to $5.39 excluding special items [32][35] Business Line Data and Key Metrics Changes - Taco Bell U.S. delivered a strong year with full year system sales up 6% and same store sales rising 5% in Q4, significantly outperforming the industry [12][13] - KFC International achieved 7% system sales growth and 14% core operating profit growth in Q4, despite a 2% decline in same store sales for the full year [10][11] - Pizza Hut's full year system sales declined 1%, but same store sales growth improved 300 basis points sequentially in Q4 [15][17] Market Data and Key Metrics Changes - In the Middle East, KFC saw a strong recovery with same store sales increasing significantly, while Africa, Latin America, and Canada experienced mid- to high single-digit same store sales growth [11][12] - Digital sales grew approximately 15% in 2024, with over $30 billion in total digital sales [21][22] - KFC's digital sales surged more than 20% in markets excluding China, driven by expanded kiosk adoption [21] Company Strategy and Development Direction - The company is focused on enhancing its technology platform, introducing Byte by Yum, a collection of proprietary software products to streamline operations and improve consumer experiences [8][40] - The strategy emphasizes deepening market penetration and expanding product offerings while enhancing value perception [12][17] - The company plans to continue investing in technology and operational effectiveness to ensure agility and resilience [28][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of international markets and the overall health of franchisees, particularly in KFC [54][61] - The company anticipates another strong year of sales performance at Taco Bell U.S. and expects same store sales performance to improve in many markets [48][50] - Management acknowledged near-term headwinds but remains optimistic about long-term growth trajectory [47][50] Other Important Information - The company opened over 4,500 new units in 2024, with KFC leading the way with nearly 2,900 new units [36][37] - The company plans to host Taco Bell's Consumer Day in New York City on March 4, showcasing growth plans [51] Q&A Session Summary Question: Health of international franchisees and growth trajectory - Management noted improvements in international markets, with KFC's system sales growth in Q4 up to 10% in unimpacted markets, while acknowledging challenges in the Middle East [54][56][58] Question: Core operating profit growth expectations for 2025 - Management indicated confidence in achieving at least 8% core operating profit growth, driven by strong performance in KFC International and Taco Bell U.S. [64][66] Question: G&A outlook and long-term expectations - Management expects G&A to increase by a low single-digit percentage, with a long-term goal of reducing G&A as a percentage of system sales [68][72] Question: Scott's leadership impact on KFC U.S. - Management expressed excitement about Scott's leadership, focusing on modernizing the consumer experience and enhancing digital capabilities [75][77] Question: Technology strategy and Bite's impact - Management highlighted the advantages of an integrated technology platform, emphasizing the benefits for franchisees and the potential for improved sales and efficiency [80][88]

Yum Brands (YUM) came out with quarterly earnings of $1.61 per share, beating the Zacks Consensus Estimate of $1.58 per share. This compares to earnings of $1.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.90%. A quarter ago, it was expected that this parent company of KFC, Taco Bell and Pizza Hut would post earnings of $1.41 per share when it actually produced earnings of $1.37, delivering a surprise of -2.84%.Over the ...

Yum! Brands exceeded fourth-quarter expectations with a strong performance driven by Taco Bell and KFC International.Yum! Brands (YUM -0.17%), the parent company of fast-food giants like KFC, Taco Bell, and Pizza Hut, delivered notable fiscal results for the fourth quarter of 2024, released on February 6, 2025. The company surpassed market expectations with adjusted earnings per share (EPS) of $1.61, edging past the anticipated $1.60. Revenue for the quarter was recorded at $2.362 billion, which was slightl ...

A sign is posted in front of a Taco Bell restaurant in Richmond, California, on May 1, 2024.Yum Brands on Thursday reported quarterly earnings and revenue that beat Wall Street estimates, fueled by strong sales for KFC's international restaurants and Taco Bell.Shares of the company rose more than 2% in premarket trading.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Earnings per share: $1.61 adjusted vs. $1.60 expectedRevenue: $2.36 billi ...

[Yum! Brands Fourth-Quarter and Full-Year 2024 Results](index=1&type=section&id=Yum!%20Brands%20Reports%20Fourth-Quarter%20and%20Full-Year%20Results) [Overall Performance Summary](index=1&type=section&id=Overall%20Performance%20Summary) Yum! Brands reported a **6%** increase in full-year **2024** EPS excluding special items, reaching **$5.48**, with **8%** core operating profit growth driven by Taco Bell's **5%** same-store sales growth and KFC International's **8%** unit growth Q4 & Full-Year 2024 Earnings Per Share (EPS) | Metric | Q4 2024 | Q4 2023 | % Change | Full-Year 2024 | Full-Year 2023 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **GAAP EPS** | **$1.49** | **$1.62** | (8)% | **$5.22** | **$5.59** | (7)% | | **EPS Excluding Special Items** | **$1.61** | **$1.26** | +28% | **$5.48** | **$5.17** | +6% | - Full-year core operating profit grew **8%** excluding the impact of the 53rd week, meeting the company's long-term growth algorithm[2](index=2&type=chunk)[9](index=9&type=chunk) - Digital sales increased by approximately **15%** in **2024**, with the digital sales mix surpassing **50%** of total sales[3](index=3&type=chunk) - The company opened **4,535** new stores across more than **100** countries during **2024**[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO David Gibbs highlighted the company's resilient business model, citing Taco Bell U.S.'s **5%** same-store sales growth and KFC International's second consecutive year of over **2,000** net new units as key strengths - CEO David Gibbs emphasized the strength of the company's twin growth engines: Taco Bell U.S. same-store sales growth and KFC International unit development[3](index=3&type=chunk) - CFO Chris Turner announced "**Byte by Yum!**", a proprietary SaaS digital ecosystem, and noted that digital sales mix surpassed **50%** in **2024**[3](index=3&type=chunk) [Strategic Initiatives and Announcements](index=1&type=section&id=Strategic%20Initiatives%20and%20Announcements) The company officially announced "**Byte by Yum!**", a proprietary AI-driven SaaS platform designed to integrate and streamline restaurant technologies, with **25,000** restaurants already using at least one of its products - Launched **Byte by Yum!**, a comprehensive, proprietary AI-driven SaaS platform integrating mobile ordering, POS, kitchen/delivery optimization, and management tools. **25,000** restaurants are currently using at least one product from the suite[7](index=7&type=chunk) - Promoted Scott Mezvinsky to KFC Division CEO, effective March **1**, **2025**[7](index=7&type=chunk) - Opened first test locations of new concepts: **Saucy by KFC** (chicken tenders with **11** sauces), **Taco Bell Live Más Cafe** (beverage concept), and a new **Pizza Hut design** with self-service kiosks and a drive-thru[7](index=7&type=chunk) [Divisional Performance Analysis](index=2&type=section&id=Divisional%20Performance%20Analysis) [KFC Division](index=3&type=section&id=KFC%20Division) For the full year **2024**, the KFC Division saw system sales grow **3%** (ex-F/X) and unit count increase by **7%**, opening **2,892** gross new restaurants, despite a **2%** same-store sales decline KFC Division Performance vs. Prior Year | Metric | Q4 2024 | Full-Year 2024 | | :--- | :--- | :--- | | **System Sales Growth (Ex-F/X)** | +6% | +3% | | **Same-Store Sales Growth** | Even | (2)% | | **Unit Growth** | +7% | +7% | | **Core Operating Profit Growth** | +15% | +6% | - Opened **1,100** gross new restaurants in Q4 and **2,892** for the full year across **97** countries[12](index=12&type=chunk)[13](index=13&type=chunk) Full-Year 2024 System Sales Growth (Ex-F/X) by Market | Market | % of System Sales | FY 2024 Growth | | :--- | :--- | :--- | | China | 27% | +6% | | United States | 14% | (5)% | | Europe (ex-UK) | 12% | +8% | | Latin America | 8% | +15% | | Africa | 5% | +11% | [Taco Bell Division](index=4&type=section&id=Taco%20Bell%20Division) The Taco Bell Division was a standout performer in **2024**, delivering **8%** system sales growth (ex-F/X) and **4%** same-store sales growth for the full year, with core operating profit growing by **11%** Taco Bell Division Performance vs. Prior Year | Metric | Q4 2024 | Full-Year 2024 | | :--- | :--- | :--- | | **System Sales Growth (Ex-F/X)** | +14% | +8% | | **Same-Store Sales Growth** | +5% | +4% | | **Unit Growth** | +2% | +2% | | **Core Operating Profit Growth** | +19% | +11% | - For the full year, Taco Bell U.S. same-store sales grew **4%**, while International same-store sales were flat[18](index=18&type=chunk) - The 53rd week in **2024** provided a significant benefit in Q4, adding **6** percentage points to system sales growth and **7** percentage points to core operating profit growth[18](index=18&type=chunk) - Full-year company-owned restaurant margins increased by **70** basis points to **24.4%**[18](index=18&type=chunk) [Pizza Hut Division](index=4&type=section&id=Pizza%20Hut%20Division) The Pizza Hut Division faced challenges in **2024**, with a full-year system sales decline of **1%** (ex-F/X) and a same-store sales decline of **4%**, resulting in a **3%** fall in core operating profit Pizza Hut Division Performance vs. Prior Year | Metric | Q4 2024 | Full-Year 2024 | | :--- | :--- | :--- | | **System Sales Growth (Ex-F/X)** | +3% | (1)% | | **Same-Store Sales Growth** | (1)% | (4)% | | **Unit Growth** | +2% | +2% | | **Core Operating Profit Growth** | (3)% | (3)% | - For the full year, U.S. same-store sales declined **3%** and International same-store sales declined **5%**[18](index=18&type=chunk) Full-Year 2024 System Sales Growth (Ex-F/X) by Market | Market | % of System Sales | FY 2024 Growth | | :--- | :--- | :--- | | United States | 42% | Even | | China | 18% | +3% | | Asia | 13% | (3)% | | Europe | 11% | (6)% | | Canada | 3% | +6% | [The Habit Burger Grill Division](index=5&type=section&id=The%20Habit%20Burger%20Grill%20Division) The Habit Burger Grill Division reported a **2%** system sales growth for the full year **2024**, though same-store sales declined by **4%**, with **16** new restaurants opened during the year Habit Burger Grill Performance - Full-Year 2024 | Metric | % Change | | :--- | :--- | | **System Sales Growth** | +2% | | **Same-Store Sales Growth** | (4)% | - The division opened **6** gross new restaurants in Q4 and **16** for the full year[23](index=23&type=chunk) [Other Items and Long-Term Outlook](index=5&type=section&id=Other%20Items%20and%20Long-Term%20Outlook) The company announced a **6%** increase in its quarterly dividend to **$0.71** per share and reaffirmed its long-term growth algorithm targeting **5%** unit growth, **7%** system sales growth, and at least **8%** core operating profit growth annually - The Board of Directors approved a **6%** dividend increase to **$0.71** per share, payable March **7**, **2025**[23](index=23&type=chunk) - Terminated franchise agreements with IS Gida A.S. in Turkey, affecting **284** KFC and **254** Pizza Hut restaurants, and is seeking a new partner[23](index=23&type=chunk) Long-Term Growth Algorithm | Metric | Target | | :--- | :--- | | **Unit Growth** | 5% | | **System Sales Growth (ex-F/X, 53rd week)** | 7% | | **Core Operating Profit Growth (ex-F/X, 53rd week)** | At least 8% | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Summary of Results (Income Statement)](index=8&type=section&id=Consolidated%20Summary%20of%20Results%20(Income%20Statement)) For the full year ended December **31**, **2024**, Yum! Brands' total revenues increased by **7%** to **$7.55** billion, while GAAP net income decreased by **7%** to **$1.49** billion due to a higher income tax provision Full-Year 2024 Consolidated Income Statement Highlights (in millions, except EPS) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$7,549** | **$7,076** | +7% | | **Operating Profit** | **$2,403** | **$2,318** | +4% | | **Net Income** | **$1,486** | **$1,597** | (7)% | | **Diluted EPS** | **$5.22** | **$5.59** | (7)% | [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) As of December **31**, **2024**, Yum! Brands reported total assets of **$6.73** billion, an increase from **$6.23** billion at year-end **2023**, while total liabilities also increased to **$14.38** billion Year-End Balance Sheet Highlights (in millions) | Metric | 12/31/2024 | 12/31/2023 | | :--- | :--- | :--- | | Cash and cash equivalents | **$616** | **$512** | | **Total Assets** | **$6,727** | **$6,231** | | Long-term debt | **$11,306** | **$11,142** | | **Total Liabilities** | **$14,375** | **$14,089** | | **Total Shareholders' Deficit** | **$(7,648)** | **$(7,858)** | [Consolidated Statements of Cash Flows](index=13&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the full year **2024**, net cash provided by operating activities was **$1.69** billion, up from **$1.60** billion in **2023**, with **$422** million used in investing activities and **$1.16** billion in financing activities Full-Year 2024 Cash Flow Summary (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | **$1,689** | **$1,603** | | Net Cash Used in Investing Activities | **$(422)** | **$(107)** | | Net Cash Used in Financing Activities | **$(1,163)** | **$(1,429)** | | **Net Increase in Cash** | **$83** | **$77** | - Key uses of cash in financing activities included **$752** million for dividends and **$441** million for share repurchases[51](index=51&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=14&type=section&id=Reconciliation%20of%20Non-GAAP%20Measurements%20to%20GAAP%20Results) [Explanation of Non-GAAP Measures and Special Items](index=14&type=section&id=Explanation%20of%20Non-GAAP%20Measures%20and%20Special%20Items) This section provides reconciliations for non-GAAP measures like Core Operating Profit and EPS excluding Special Items, which are used internally to evaluate performance by excluding distorting factors such as foreign currency fluctuations and specific charges - The company provides non-GAAP measures like Core Operating Profit and EPS excluding Special Items to facilitate comparison of past and present operations by removing distorting factors[54](index=54&type=chunk) - Core Operating Profit is a key internal performance metric that excludes Special Items and the impact of foreign currency (F/X) translation[59](index=59&type=chunk) - Key Special Items in Q4 **2024** included **$61** million in German acquisition and Turkey termination-related costs and **$21** million in charges for a resource optimization program[59](index=59&type=chunk)[75](index=75&type=chunk) [Reconciliation of Operating Profit and EPS](index=14&type=section&id=Reconciliation%20of%20Operating%20Profit%20and%20EPS) For the full year **2024**, GAAP Operating Profit was **$2.40** billion, which, after adjusting for **$141** million in Special Items expenses and a **$28** million negative foreign currency impact, resulted in a Core Operating Profit of **$2.57** billion Full-Year 2024 Reconciliation of GAAP to Core Operating Profit (in millions) | Metric | Amount | | :--- | :--- | | **GAAP Operating Profit** | **$2,403** | | Special Items Expense | **$141** | | Negative Foreign Currency Impact | **$28** | | **Core Operating Profit** | **$2,572** | Full-Year 2024 Reconciliation of GAAP to Non-GAAP Diluted EPS | Metric | Amount | | :--- | :--- | | **Diluted EPS (GAAP)** | **$5.22** | | Less: Special Items Diluted EPS | **$(0.26)** | | **Diluted EPS excluding Special Items** | **$5.48** |

Wall Street analysts forecast that Yum Brands (YUM) will report quarterly earnings of $1.58 per share in its upcoming release, pointing to a year-over-year increase of 25.4%. It is anticipated that revenues will amount to $2.32 billion, exhibiting an increase of 14% compared to the year-ago quarter.The consensus EPS estimate for the quarter has been revised 1.6% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial est ...

YUM! Brands, Inc. (YUM) is scheduled to report fourth-quarter 2024 results on Feb. 6, before the opening bell. In the last reported quarter, the company’s bottom line missed the Zacks Consensus Estimate by 2.8%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.YUM’s Q4 EstimatesThe Zacks Consensus Estimate for earnings per share is pegged at $1.58, indicating a gain of 25.4% from the prior-year quarter. In the past 30 days, the consensus estimate for current-quarter earnings has witne ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Yum Brands (YUM) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 6. ...