YUM! Brands' Q4 Earnings & Revenues Beat Estimates, Rise Y/Y

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]