Yum!(US:YUM)2024-08-06 11:01Sales 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].