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]