Company Overview - YUM! Brands Inc. is a global leader in multi-branding, offering consumers a variety of choices at a single outlet. The company operates through four segments: KFC (41% of total 2024 revenues), Pizza Hut (13.4%), Taco Bell (37.9%), and Habit Burger Grill (7.9%) [11]. Investment Ratings - YUM is currently rated as a 3 (Hold) on the Zacks Rank, with a VGM Score of B. This indicates a moderate investment outlook [12]. - The company has a Growth Style Score of A, forecasting a year-over-year earnings growth of 9.7% for the current fiscal year [12]. Earnings Estimates - In the last 60 days, seven analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.04 to $6.01 per share [12]. - YUM has an average earnings surprise of 0.5%, suggesting that the company has a history of exceeding earnings expectations [12]. Investment Potential - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, YUM is recommended to be on investors' short lists for potential growth opportunities [13].

Financial Performance - Total revenues for Q1 2025 reached $1,787 million, a 12% increase from $1,598 million in Q1 2024[8] - Net income for Q1 2025 was $253 million, down 19% from $314 million in Q1 2024[8] - Basic earnings per share for Q1 2025 were $0.91, compared to $1.11 in Q1 2024, reflecting a decrease of 18%[8] - Operating profit for Q1 2025 was $548 million, slightly up from $520 million in Q1 2024, indicating a 5% increase[8] - The company reported a comprehensive income of $275 million for Q1 2025, compared to $307 million in Q1 2024[10] - U.S. revenues for KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill Divisions totaled $1.0 billion in Q1 2025, up from $0.9 billion in Q1 2024, representing an increase of approximately 11.1%[54] - Company sales reached $607 million, up 28.1% from $474 million in the prior year quarter[8] - Consolidated operating profit for the quarter was $548 million, with income before income taxes reported at $429 million[52] Cash Flow and Assets - Cash provided by operating activities in Q1 2025 was $404 million, an increase from $363 million in Q1 2024[12] - Total assets as of March 31, 2025, were $6,659 million, a decrease from $6,727 million at the end of 2024[14] - Cash and cash equivalents as of March 31, 2025, totaled $607 million, down from $616 million at the end of 2024[40] - The total cash, cash equivalents, restricted cash, and restricted cash equivalents decreased to $782 million as of March 31, 2025, down from $807 million as of December 31, 2024, representing a decrease of about 3.1%[40] - Accounts and notes receivable, net decreased to $712 million from $775 million as of December 31, 2024[37] - Property, plant and equipment, net increased to $1,338 million from $1,304 million at the end of 2024[39] Shareholder Information - Shareholders' deficit increased to $7,804 million as of March 31, 2025, compared to $7,648 million at the end of 2024[14] - Dividends declared per common share increased to $0.71 in Q1 2025 from $0.67 in Q1 2024[8] - The company declared dividends of $199 million in Q1 2025, compared to $190 million in Q1 2024, representing a 4.7% increase[15] - The company repurchased 1,556 thousand shares of common stock for $228 million, with remaining capacity to repurchase up to $1.4 billion[33] Tax and Legal Matters - The effective tax rate for Q1 2025 was 41.0%, significantly higher than the 18.0% rate in Q1 2024[41] - The income tax provision for the quarter ended March 31, 2025, was $176 million, significantly higher than the $69 million recorded in the same quarter of 2024, indicating a year-over-year increase of approximately 155.2%[41] - The IRS has proposed an underpayment of tax amounting to $2.1 billion plus $418 million in penalties for the fiscal year 2014, with an estimated interest of approximately $1.5 billion through Q1 2025[72] - The company intends to contest the IRS's proposed tax adjustments vigorously and has filed a protest with the IRS Examination Division[73] - The company does not expect resolution of the IRS matter within twelve months and believes its tax position will be sustained[74] Acquisitions and Growth Strategy - The acquisition of 216 KFC restaurants in the U.K. and Ireland was completed for a purchase price of $177 million, enhancing KFC's growth strategy in the region[23][26] - The total identifiable net assets from the acquisition were valued at $89 million, with goodwill recognized at $88 million[27][29] - As of March 31, 2025, Yum! Brands operated over 60,000 restaurants in more than 155 countries, with 98% owned by franchisees[17] Capital Expenditures - Capital spending for Q1 2025 was $71 million, up from $49 million in Q1 2024[12] - Capital spending for the quarter was $71 million, with KFC and Taco Bell accounting for $18 million and $31 million, respectively[53] Debt and Financial Instruments - The company has a total long-term debt of $11.327 billion as of March 31, 2025, compared to $11.306 billion at the end of 2024, reflecting a marginal increase[58] - The company entered into new interest rate swaps in April 2025 to fix the interest rate on $1.5 billion of borrowings at a rate of 5.09% from April 2025 to March 2028[63] - The carrying value of the Term Loan A Facility was $500 million, with a fair value of $496 million as of March 31, 2025[69] - The carrying value of the YUM Senior Unsecured Notes was $4.550 billion, with a fair value of $4.395 billion as of March 31, 2025[69] Miscellaneous - The company recognized a foreign exchange net loss of $3 million in Q1 2025, compared to a gain of $5 million in Q1 2024[35] - The company is appealing a court decision regarding the utilization of tax losses in Mexico, with no expected resolution within twelve months[44] - The company incurred corporate and unallocated G&A expenses of $105 million for the quarter, which included charges related to resource optimization and brand headquarters consolidation[55] - The company recorded a net periodic benefit cost of $(1) million for its U.S. pension plans for the quarter ended March 31, 2025[57] - The company reported a loss of $20 million related to the sale of a 5% minority interest in Devyani International Limited during Q1 2024[60]

Group 1 - The collaboration between Nanjing Hongshan Forest Zoo and well-known brands has created new engagement opportunities, attracting nationwide fans during the May Day holiday [1][2] - The zoo's partnership with Golden Eagle Group has launched a 2.0 version of deep co-creation, themed "Everything is Cute," integrating cultural tourism and commerce to enhance visitor experiences [1][3] - The zoo implemented a visitor management system during the holiday, limiting daily admissions to 80,000 and peak in-park numbers to 40,000 to ensure safety and order [3] Group 2 - The collaboration with KFC introduced exclusive merchandise, such as plush keychains, which significantly increased customer engagement and social media discussions, with a topic reaching 409,000 views and 2,660 discussions [2] - A pop-up bus featuring zoo mascots was deployed at a shopping area, further promoting the partnership and attracting fans for photo opportunities [2][3] - The zoo's visitor numbers ranked in the top four among city attractions during the holiday, indicating a successful marketing strategy [3]

Core Insights - Yum Brands reported $1.79 billion in revenue for Q1 2025, an 11.8% year-over-year increase, with EPS of $1.30 compared to $1.15 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $1.84 billion by 2.76%, while the EPS exceeded the consensus estimate of $1.29 by 0.78% [1] Financial Performance Metrics - System same-store sales for Pizza Hut Division decreased by 2% compared to an estimated increase of 1.4% [4] - Taco Bell Division saw a 9% increase in same-store sales, surpassing the estimated 7.4% [4] - KFC Division reported a 2% increase in same-store sales, slightly above the estimated 1.6% [4] - Total restaurants for Taco Bell Division were 8,723, below the average estimate of 8,794 [4] Revenue Breakdown - Company sales for Taco Bell Division were $607 million, below the average estimate of $640.81 million, but represented a year-over-year increase of 28.1% [4] - Franchise contributions for advertising and other services amounted to $395 million, slightly above the average estimate of $394.76 million, with a year-over-year change of 7.6% [4] - Franchise and property revenues totaled $785 million, below the average estimate of $805.21 million, reflecting a 3.7% year-over-year increase [4] - Habit Burger Grill Division company sales were $125 million, below the average estimate of $134.02 million [4] - Taco Bell Division franchise and property revenues reached $234 million, exceeding the estimated $229.75 million, with an 11.4% year-over-year increase [4] - Pizza Hut Division franchise and property revenues were $143 million, below the average estimate of $151.72 million, representing a 3.4% year-over-year decline [4] - KFC Division franchise and property revenues totaled $407 million, slightly below the average estimate of $416.53 million, with a 2.5% year-over-year increase [4] - Taco Bell Division franchise contributions for advertising and other services were $160 million, slightly below the average estimate of $162.24 million, with an 8.1% year-over-year increase [4] Stock Performance - Yum Brands shares have returned -7.1% over the past month, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - YUM! Brands, Inc. reported first-quarter 2025 results with adjusted earnings exceeding expectations while revenues fell short, reflecting a year-over-year increase in both metrics [1][3]. Financial Performance - Adjusted earnings per share (EPS) for the quarter were $1.30, surpassing the Zacks Consensus Estimate of $1.29 by 0.8%, and increased 13% from $1.15 in the same quarter last year [3]. - Quarterly revenues reached $1.79 billion, missing the consensus mark of $1.83 billion, but rose 12% year-over-year [3]. Divisional Contributions - KFC division revenues totaled $773 million, up 22% year-over-year, with comparable sales growing 2% [5]. - Taco Bell revenues were $657 million, reflecting a 10% year-over-year increase, with comparable sales up 9% [7]. - Pizza Hut revenues decreased to $231 million, down 3% year-over-year, with comparable sales declining 2% [6]. - Habit Burger Grill revenues were $128 million, slightly down from $130 million in the prior year, with comparable sales declining 3% [8]. Digital Sales and Strategy - Digital sales approached $9 billion, accounting for 55% of total sales, indicating significant progress in the company's digital strategy [2]. - Positive feedback from franchisees on the proprietary digital platform, Byte by Yum!, supports the brand's tech-driven growth strategy [2]. Long-Term Outlook - The company reaffirms its long-term financial targets, aiming for approximately 5% annual unit growth and a 7% increase in system sales, excluding foreign currency effects [11]. - Targeting at least 8% growth in core operating profit, adjusted for currency movements and calendar anomalies [11]. Other Financial Details - As of March 31, 2025, cash and cash equivalents totaled $607 million, while long-term debt stood at $11.33 billion [10].

Yum! Brands reported solid earnings with strong performance in its Taco Bell and KFC segments, overcoming challenges in the Pizza Hut segment.Yum! Brands (YUM 1.19%), the global fast-food powerhouse with brands like KFC, Taco Bell, and Pizza Hut, shared its first-quarter earnings report on April 30, 2025. The report revealed mixed results, with a Non-GAAP EPS of $1.30, narrowly surpassing the $1.29 expectation. The revenue totaled $1.79 billion, underperforming the anticipated $1.85 billion.Despite revenue ...

Financial Performance - Yum Brands reported quarterly earnings of $1.30 per share, exceeding the Zacks Consensus Estimate of $1.29 per share, and up from $1.15 per share a year ago, representing an earnings surprise of 0.78% [1] - The company posted revenues of $1.79 billion for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 2.76%, compared to $1.6 billion in the same quarter last year [2] - Over the last four quarters, Yum has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Stock Performance and Outlook - Yum shares have increased by approximately 10.1% since the beginning of the year, contrasting with a decline of 5.5% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.45 on revenues of $1.96 billion, and for the current fiscal year, it is $5.99 on revenues of $8.2 billion [7] Industry Context - The Retail - Restaurants industry, to which Yum belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Yum's stock performance [5][6]

Yum! Brands (YUM) Q1 2025 Earnings Call April 30, 2025 08:15 AM ET Speaker0 I would now like to hand over to your host, Matt Morris, Head of Investor Relations, begin. Please go ahead, Matt. Speaker1 Good morning, everyone, and thank you for joining us today. On our call are David Gibbs, our CEO Chris Turner, our CFO and Dave Russell, our Senior Vice President and Corporate Controller. Following remarks from David and Chris, we'll open the call to questions. Please note that this call includes forward looki ...

Yum! Brands (YUM) Q1 2025 Earnings Call April 30, 2025 08:15 AM ET Company Participants Matt Morris - Head of Investor RelationsDavid Gibbs - CEOChris Turner - Chief Financial & Franchise OfficerDavid Tarantino - Director of ResearchDennis Geiger - Executive Director - Equity ResearchDavid Palmer - Senior Managing DirectorJohn Ivankoe - MD - Equity ResearchAndrew Charles - Managing Director Conference Call Participants Brian Bittner - Senior Equity Analyst - RestaurantsDanilo Gargiulo - Senior Research Anal ...

A Pizza Hut store is seen on November 01, 2023 in Austin, Texas. Pizza Hut's third-quarter revenue fell short of analysts' expectations for same-store sales.Yum Brands on Wednesday reported mixed quarterly results as Pizza Hut's same-store sales fell more than expected.Shares of the company fell less than 1% in premarket trading.Here's what the company reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Earnings per share: $1.30 adjusted vs. $1. ...