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]

Core Insights - Yum! Brands has partnered with Nvidia to develop and scale AI technologies for its restaurant brands, including KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill [1][4] - The partnership aims to enhance Yum! Brands' existing AI-driven restaurant technology platform, Byte by Yum! [1][2] AI Solutions - The AI solutions will feature voice-automated order-taking agents for drive-thru and call center operations, computer vision for optimizing drive-thru efficiency, and AI-driven analytics for restaurant performance [3] - Yum! Brands has piloted several AI solutions in select Taco Bell and Pizza Hut locations, with plans to roll out the technology to 500 restaurants in the second quarter [4] Implementation and Impact - The Byte by Yum! AI-driven platform is already operational at 25,000 international locations and will continue to expand globally [5] - The drive-thru voice AI system has processed over 2 million successful orders in over 300 Taco Bell stores, with franchisees showing interest in testing this innovation [6] - Early pilots of AI-powered marketing campaigns have resulted in double-digit increases in customer engagement compared to traditional digital marketing [6]

Two chipmakers are teaming up.Yum Brands is partnering with tech giant Nvidia to accelerate the use of artificial intelligence in its restaurants.The restaurant company, which owns Taco Bell, KFC and Pizza Hut, said on Tuesday that the collaboration will allow Yum to roll out AI order-taking, Nvidia-powered computer vision and restaurant performance assessments fueled by AI.As tech giants compete in an AI arms race, restaurant companies have also been using the technology to stay ahead of rivals by improvin ...

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].

Core Concept - Pizza Hut has introduced a new customizable product called Pizza Charcuterie, aimed at enhancing social gatherings and celebrating Pi Day [1][2][3] Product Offering - The Pizza Charcuterie is priced at $24.99 and includes 2 medium pizzas, 8 boneless wings, choice of sticks, and 2 dips, with a maximum of 10 toppings [2][4] - The product is designed to be visually appealing and encourages customers to create their own unique pizza boards [1][3] Marketing Strategy - Pizza Hut collaborated with former NFL player Robert Gronkowski to promote the Pizza Charcuterie, leveraging his popularity and personality to attract attention [2][3] - The Chief Marketing Officer emphasized the shift from traditional charcuterie boards to a pizza-centric experience, highlighting the fun and social aspect of the new offering [3] Company Background - Pizza Hut, a subsidiary of Yum! Brands, has a long history of innovation in the pizza industry, with over 19,500 restaurants in more than 100 countries [5] - The company has a strong digital presence, with over half of its transactions coming from digital orders, reflecting its commitment to modernizing the customer experience [5]

Core Concept - Pizza Hut is launching a new customizable Pizza Charcuterie board, aimed at enhancing social gatherings and celebrating Pi Day [1][2][3] Product Offering - The Pizza Charcuterie is priced at $24.99 and includes 2 medium pizzas, 8 boneless wings, and a choice of sticks and dips [2][4] - Customers can design their own board with a maximum of 10 toppings on the pizzas [4] Marketing Strategy - Pizza Hut collaborated with former NFL player Robert Gronkowski to promote the Pizza Charcuterie, leveraging his popularity and personality [2][3] - The Chief Marketing Officer emphasized the trend of creative charcuterie boards and positioned the Pizza Charcuterie as a fun and impressive option for various social occasions [3] Company Background - Pizza Hut, a subsidiary of Yum! Brands, has a long history of innovation in the pizza industry, with over 19,500 restaurants in more than 100 countries [5] - The company has a strong digital presence, with over half of its transactions coming from digital orders [5]

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]

Core Viewpoint - Yum Brands Inc. anticipates that Taco Bell's first-quarter same-store sales growth will exceed the overall company growth as it aims to expand the fast-food chain's presence [1] Summary by Category - **Sales Growth Expectations** - Yum Brands expects an 8% same-store sales growth for Taco Bell in the first quarter, significantly higher than the 2.7% consensus estimate for the company's overall same-store sales growth [1]

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].

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]