Yum!(US:YUM) Zacks Investment Research·2024-02-07 17:11Core Viewpoint - YUM! Brands, Inc. reported fourth-quarter 2023 results with both earnings and revenues missing the Zacks Consensus Estimate for the third consecutive quarter, leading to a 2.4% decline in shares during pre-market trading on February 7 [1]. Earnings and Revenue Discussion - Adjusted earnings per share (EPS) for Q4 2023 were $1.26, falling short of the Zacks Consensus Estimate of $1.39, and representing a 5% decrease year over year [2]. - Quarterly revenues reached $2,036 million, missing the consensus mark of $2,116 million, but showing a 1% year-over-year increase [2]. - Worldwide system sales, excluding foreign currency translation, increased by 5% year over year, with Taco Bell, KFC, and Pizza Hut growing by 6%, 7%, and 1% respectively [2]. Divisional Performance - KFC revenues totaled $761 million, down 4% year over year, with comparable sales increasing by 2% compared to 6% in the previous quarter. The operating margin improved by 430 basis points to 43.3%, and 1,067 new restaurants were opened [3]. - Pizza Hut generated revenues of $281 million, down 2% year over year, with comparable sales decreasing by 2%. The operating margin increased by 50 basis points to 35%, and 575 new restaurants were opened [3]. - Taco Bell's revenues were $819 million, up 7% year over year, with comparable sales increasing by 3%. The operating margin expanded by 280 basis points to 34.9%, and 201 new restaurants were opened [4]. - Habit Burger Grill revenues amounted to $175 million, up 1.7% year over year, with comparable sales declining by 5%. The division opened 10 new restaurants [4]. Other Financial Details - As of December 31, 2023, cash and cash equivalents were $512 million, an increase from $367 million at the end of 2022. Long-term debt decreased to $11,142 million from $11,453 million at the end of 2022 [5].