Core Points - KFC is relocating its U.S. headquarters from Louisville, Kentucky, to Plano, Texas, as part of Yum Brands' strategy to establish two corporate headquarters [1][2] - Approximately 100 KFC U.S. employees will need to relocate within the next six months, along with about 90 remote workers [1][2] - Yum Brands will maintain corporate offices in Louisville and plans to build a new flagship restaurant in the city [2] - The trend of relocating corporate headquarters has been influenced by factors such as lower taxes and changes in office space needs due to hybrid or remote work models [3] - Texas has emerged as a popular choice for corporate relocations, according to a 2023 report from CBRE [3] - Competitor Papa Johns previously moved its headquarters from Louisville to Atlanta in 2020, highlighting a trend among companies in the region [4]

Core Insights - Yum! Brands is expected to have a strong fiscal year 2024, with Taco Bell being a standout performer, likely to receive significant recognition for its success [1] Company Analysis - Taco Bell is anticipated to drive substantial growth for Yum! Brands in FY 2024, indicating a positive outlook for the brand within the fast-food sector [1] - The company has a diversified portfolio that includes various restaurant segments, which may contribute to its overall resilience and performance in the market [1] Industry Context - The restaurant industry, particularly the quick-service restaurant (QSR) segment, is experiencing favorable trends that could benefit companies like Yum! Brands [1]

Group 1 - Yum! Brands, Inc. (NYSE: YUM) shares are showing potential for a breakout, indicating a favorable trading opportunity in the near term and a solid long-term investment option due to dividend collection [1] - The investment strategy suggested involves a blended approach of trading and income, aimed at enhancing savings and retirement timelines [1] Group 2 - The service offers a money-back guarantee for unsatisfied customers, emphasizing confidence in the investment ideas provided [2] - The team behind the service has a proven track record, suggesting reliability in their investment recommendations [2]

Core Insights - YUM! Brands, Inc. reported strong fourth-quarter 2024 results, with adjusted earnings and total revenues exceeding the Zacks Consensus Estimate, showing year-over-year growth [1][4] Financial Performance - Adjusted earnings per share (EPS) for Q4 were $1.61, surpassing the Zacks Consensus Estimate of $1.58 by 1.9%, and increased 28% from $1.26 in the prior year [4] - Quarterly revenues reached $2.36 billion, beating the consensus mark of $2.32 billion by 1.8%, and rose 16% year-over-year [4] - Worldwide system sales, excluding foreign currency translation, grew 8% year-over-year, with Taco Bell increasing 14%, KFC rising 6%, and Pizza Hut up 3% [5] Divisional Performance - **KFC**: Revenues totaled $965 million, up 27% year-over-year, with flat comps growth compared to a 2% gain in the prior year. Operating margin contracted 430 basis points to 39% [6][7] - **Pizza Hut**: Revenues were $293 million, up 4% year-over-year, with a 1% decline in comps. Operating margin contracted 260 basis points to 32.4% [7][8] - **Taco Bell**: Revenues reached $930 million, up 14% year-over-year, with comps increasing 5%. Operating margin expanded 160 basis points to 36.5% [8][9] - **Habit Burger Grill**: Revenues amounted to $192 million, compared to $175 million in the prior year, with flat comps growth. [9] Digital Initiatives - The company reported a 15% increase in digital sales, with the digital mix surpassing 50%, moving towards a long-term goal of 100% digital sales. The launch of Byte by Yum!, a proprietary SaaS platform, aims to enhance restaurant operations through integrated technology solutions [2] Other Financial Details - As of December 31, 2024, cash and cash equivalents totaled $616 million, up from $512 million at the end of 2023. Long-term debt increased to $11.3 billion from $11.14 billion [10] - A 6% dividend hike was declared to 71 cents per share, payable on March 7, 2025 [10] Annual Highlights - Total revenues for 2024 were $7.5 billion, compared to $7.1 billion in 2023. Net income totaled $1.49 billion, down from $1.6 billion in 2023. Adjusted EPS for 2024 was $5.48, up from $5.17 in the previous year [11]

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 ...