Core Insights - Yum Brands reported revenue of $1.76 billion for the quarter ended June 2024, reflecting a year-over-year increase of 4.5% but a revenue surprise of -1.89% compared to the Zacks Consensus Estimate of $1.8 billion [1] - The earnings per share (EPS) was $1.35, down from $1.41 in the same quarter last year, but exceeded the consensus estimate of $1.32 by 2.27% [1] Financial Performance Metrics - KFC Division's system same-store sales decreased by 3%, worse than the average estimate of -0.9% [2] - Pizza Hut Division's system same-store sales also fell by 3%, compared to the average estimate of -2.6% [2] - Taco Bell Division's system same-store sales increased by 5%, outperforming the average estimate of 2.9% [2] Revenue Breakdown - Franchise contributions for advertising and other services totaled $402 million, slightly below the average estimate of $412.23 million, representing a year-over-year increase of 2.8% [4] - Franchise and property revenues were $789 million, compared to the average estimate of $811.89 million, showing a year-over-year increase of 0.5% [5] - Company sales reached $572 million, exceeding the average estimate of $569.65 million, with a year-over-year increase of 11.9% [6] Division-Specific Revenues - KFC Division's franchise contributions for advertising and other services were $149 million, below the average estimate of $161.72 million, reflecting a year-over-year decrease of 1.3% [7] - Habit Burger Grill Division generated $141 million, falling short of the average estimate of $149.52 million [8] - Pizza Hut Division's franchise contributions for advertising and other services were $89 million, in line with the average estimate of $89.61 million, showing no year-over-year change [9] - Taco Bell Division's franchise contributions for advertising and other services reached $164 million, surpassing the average estimate of $159.62 million, with a year-over-year increase of 9.3% [10] - KFC Division's company sales were $163 million, exceeding the average estimate of $148.41 million, with a significant year-over-year increase of 41.7% [11] Stock Performance - Yum Brands shares have returned +4.2% over the past month, contrasting with the Zacks S&P 500 composite's -6.7% change [11] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [11]

Yum! Brands, Inc. (NYSE:YUM) Q2 2024 Earnings Conference Call August 6, 2024 8:15 AM ET Company Participants Matt Morris - Head, Investor Relations David Gibbs - Chief Executive Officer Chris Turner - Chief Financial Officer Conference Call Participants David Tarantino - Baird Jon Tower - Citi Andrew Charles - TD Cowen Brian Bittner - Oppenheimer Dennis Geiger - UBS Brian Harbour - Morgan Stanley Danilo Gargiulo - Bernstein Operator Hello, and welcome to the Yum! Brands 2024 Second Quarter Earnings Call. My ...

Company Performance - Yum Brands reported quarterly earnings of $1.35 per share, exceeding the Zacks Consensus Estimate of $1.32 per share, but down from $1.41 per share a year ago, indicating a 4.25% year-over-year decline [1] - The company posted revenues of $1.76 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 1.89%, and showing an increase from $1.69 billion year-over-year [1] - Over the last four quarters, Yum has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [1] Stock Outlook - Yum shares have increased approximately 2% since the beginning of the year, underperforming the S&P 500, which gained 8.7% [2] - The current consensus EPS estimate for the upcoming quarter is $1.47 on revenues of $1.91 billion, and for the current fiscal year, it is $5.64 on revenues of $7.68 billion [4] Industry Context - The Retail - Restaurants industry, to which Yum belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges for stock performance [5] - Another company in the same industry, Dutch Bros, is expected to report quarterly earnings of $0.13 per share, with revenues projected to be $317.07 million, reflecting a 26.9% increase from the year-ago quarter [6]

In this articleA sign is posted in front of a Taco Bell restaurant on May 01, 2024 in Richmond, California.Yum Brands on Tuesday reported revenue that fell short of expectations as both Pizza Hut and KFC reported declining same-store sales.Shares of the company fell 1% 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: $1.35 adjusted. That may not compare with $1.33 expected.Revenue: $1.76 billion vs. ...

Sales and Revenue Growth - Yum! Brands reported a 3% growth in worldwide system sales, excluding foreign currency translation, with KFC at 2%, Taco Bell at 7%, and Pizza Hut flat [4]. - Company sales for the quarter ended June 30, 2024, were $572 million, a 12% increase from $511 million in the same quarter of 2023 [26]. - Total revenues for the year to date were $3,361 million, reflecting a 1% increase from $3,332 million in the previous year [26]. - Taco Bell's same-store sales grew by 5%, and KFC's unit growth was 8% [3]. - Taco Bell Division revenues increased to $1,264 million in 2024 from $1,193 million in 2023, marking a growth of 5.9% [66]. Operating Profit and Margins - Second-quarter GAAP operating profit increased by 6%, while core operating profit grew by 10% [4]. - Operating profit for the consolidated entity was $1,127 million for the year to date ended June 30, 2024, compared to $1,096 million in 2023, indicating an increase of 2.8% [66]. - Operating profit rose by 10% to $250 million for the quarter ended June 30, 2024, up from $228 million in the same quarter last year [32]. - Operating margin improved to 37.5% for the quarter ended June 30, 2024, compared to 36.8% in the same quarter last year [32]. - Company restaurant margin for the year to date ended June 30, 2024, was 16.8%, up from 17.0% in 2023, showing a slight decrease of 1.2% [66]. Net Income and Earnings Per Share - Net income for the quarter was $367 million, a decrease of 12% compared to $418 million in the same quarter of 2023 [26]. - GAAP EPS for the second quarter was $1.28, reflecting a 12% decrease year-over-year [6]. - Basic EPS for the quarter was $1.30, down 13% from $1.49 in the same quarter of the previous year [26]. - Diluted EPS for the quarter ended June 30, 2024, was $1.28, down from $1.46 in the same quarter of 2023, representing a decrease of 12.3% [51]. Restaurant Openings and Expansion - KFC opened 598 gross new restaurants across 57 countries during the quarter [9]. - Taco Bell opened 56 gross new restaurants across 11 countries [11]. - Pizza Hut opened 236 gross new restaurants across 30 countries [13]. - The company operates over 59,000 restaurants in more than 155 countries and territories [23]. Digital Sales and Technology - Digital sales reached nearly $8 billion, with a digital mix exceeding 50% [4]. - The company has initiated a resource optimization program, incurring charges of $46 million for the year to date ended June 30, 2024, aimed at enhancing digital and technology capabilities [72]. Costs and Expenses - Total costs and expenses for the quarter ended June 30, 2024, were $416 million, a 6% increase from $393 million in the same quarter last year [32]. - General and administrative expenses for the year to date ended June 30, 2024, totaled $567 million, compared to $573 million in 2023, reflecting a decrease of 1.0% [66]. - Total costs and expenses for the year to date ended June 30, 2024, were $2,234 million, an increase from $2,236 million in 2023, indicating a marginal decrease of 0.1% [66]. Foreign Currency Impact - Foreign currency translation negatively impacted operating profit by $12 million [4]. - Negative foreign currency impact on divisional operating profit for the quarter ended June 30, 2024, was $12 million, compared to no impact in the same quarter of 2023 [50]. Dividends - The company declared dividends of $0.67 per common share, an increase from $0.605 in the same quarter of the previous year [26]. Tax Benefits and Special Items - Special Items Tax Benefit for the quarter ended June 30, 2024, was $(7) million, compared to $(30) million for the same quarter in 2023 [73]. - Year-to-date Special Items Tax Benefit as of June 30, 2024, was $(17) million, compared to $(32) million for the same period in 2023 [73]. - Other Income Tax impacts recorded as Special for the year to date ended June 30, 2024, include benefits from favorable tax audit resolutions in foreign jurisdictions [74].

Yum! Brands, Inc. YUM is set to release earnings results for its second quarter, before the opening bell on Aug. 6, 2024.Analysts expect the Parsippany, Louisville, Kentucky-based company to report quarterly earnings at $1.33 per share, down from $1.41 per share in the year-ago period. Yum! Brands is projected to report quarterly revenue of $1.8 billion, compared to $1.75 billion a year earlier, according to data from Benzinga Pro.On May 15, Yum! Brands declared a quarterly dividend of 67 cents per share an ...

Yum! Brands, Inc. (YUM) is slated to release second-quarter 2024 results on Aug 6, before the opening bell. In the last reported quarter, the company's earnings missed the Zacks Consensus Estimate by 4.2%. The top line declined 3% year over year, while the bottom line increased 9% from the prior-year quarter's figure. YUM surpassed earnings estimates in three out of the trailing four quarters. The average surprise over this period is 3.9%, as shown in the chart below. Image Source: Zacks Investment Research ...

In its upcoming report, Yum Brands (YUM) is predicted by Wall Street analysts to post quarterly earnings of $1.32 per share, reflecting a decline of 6.4% compared to the same period last year. Revenues are forecasted to be $1.8 billion, representing a year-over-year increase of 6.5%.Over the last 30 days, there has been a downward revision of 0.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial for ...

Taco Bell's parent company is ramping up its implementation of drive-thru AI at the chain.Yum! Brands said Wednesday that hundreds of Taco Bells are set to have voice AI by the end of 2024.Other fast-food chains have been experimenting with automation and AI in recent years. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. Em ...

Group 1: Taco Bell's AI Integration - Taco Bell will implement AI voice technology in hundreds of its drive-thrus by the end of the year, currently in over 100 locations across 13 states [1] - The integration aims to enhance operations for team members and improve the customer ordering experience, with benefits including reduced wait times and increased order accuracy [1] - Yum! Brands has increased its investment in digital technology and innovation to $21 million in 2023, up from $11 million in the previous year [3] Group 2: Industry Trends and Challenges - Other fast-food chains like Checkers & Rally's, Hardee's, Carl's Jr., and Wendy's are also testing or implementing similar AI technology in their drive-thrus [3] - The fast-food industry is facing labor shortages, with restaurant employment growing by less than 1% despite high demand, pushing reliance on technology and automation [3] - McDonald's recently ended its partnership with IBM for an AI-powered drive-thru system, indicating challenges in implementing such technology amid industry-wide labor issues [2]