This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Dive Brief: Yum Brands introduced a new leader to the helm of its technology efforts amid several other executive changes, the Taco Bell and Pizza Hut parent company said Tuesday. Jim Dausch has been promoted to chief digital and technology officer and president of Byte by Yum, the restaurant brand’s SaaS platform of AI-driven tools for customers, processes and internal te ...

Financial Data and Key Metrics Changes - The company reported an 8% core operating profit growth over the last two years, maintaining this growth in Q1 [12][28] - The long-term growth algorithm aims for 5% unit growth annually, coupled with same-store sales growth translating to 7% system sales growth, targeting at least 8% core operating profit growth [31][32] Business Line Data and Key Metrics Changes - Taco Bell US significantly outperformed the US QSR industry in Q1, achieving a 9% same-store sales growth [62] - KFC International is the leading unit development engine, opening a new restaurant approximately every three hours [10][25] Market Data and Key Metrics Changes - The company operates in over 50 countries with a 98% franchise model, providing resilience in various macroeconomic environments [11][12] - Yum China continues to expand, serving only one-third of the Chinese population, indicating substantial growth potential [43][44] Company Strategy and Development Direction - The company is focused on transforming into a pure-play franchisor, emphasizing digital and technology capabilities through initiatives like Byte by Yum [12][21] - The strategic imperative includes leveraging scale across brands for procurement and supply chain efficiencies [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of KFC and Taco Bell, highlighting the resilience of the business model amid macroeconomic volatility [11][12] - The management acknowledged the challenges faced in international markets, particularly with Taco Bell in China, but remains optimistic about future growth [38][44] Other Important Information - The company has made significant investments in technology and digital capabilities, with over 40 AI projects underway [92][106] - The leadership team is seen as a critical factor in maintaining the brand's relevance and innovation [76][82] Q&A Session Summary Question: What is still underappreciated in the stock today? - Management believes the growth potential and the value of Byte technology are underappreciated by investors [24][27] Question: How sustainable is the 5% unit growth beyond 2025? - Management is confident in sustaining the 5% unit growth due to strong franchise capabilities and market opportunities [31][34] Question: How does the algorithm hinge on recovery in China? - While China has been a primary growth driver, there are still significant opportunities for unit growth globally [42][46] Question: How does the company view competition in the market? - The company is focused on outcompeting rivals and believes its franchising capabilities provide a competitive advantage [53][56] Question: What role does digital play in the company's strategy? - Digital initiatives, particularly Byte, are expected to enhance operational efficiency and improve franchisee economics [83][86] Question: How does the company balance investments in technology versus profitability? - Management aims to optimize resources while ensuring long-term growth through strategic investments in technology [96][97]