Financial Data and Key Metrics Changes - The company reported a core operating profit increase of 8% in the first quarter, reaching $586 million, driven by strong performances from Taco Bell U.S. and KFC International [5][30] - System sales grew by 5%, with same-store sales growth of 3% and unit growth of 3% [30] - Taco Bell's operating profit increased by 16%, while KFC's operating profit grew by 9% [30][32] Business Line Data and Key Metrics Changes - Taco Bell U.S. achieved a 9% increase in same-store sales, with system sales up 11% [8][18] - KFC International reported low single-digit traffic growth and same-store sales growth of 3%, with notable performance in Canada and Korea [11][17] - Pizza Hut experienced a 3% decline in system sales, primarily due to underperformance in the U.S., although international markets showed positive trends [20][21] Market Data and Key Metrics Changes - KFC International's same-store sales growth was 5% when excluding China, with positive trends across all 10 measured markets [56] - In Canada, KFC saw a 6% same-store sales increase, while Korea reported a 13% increase [17] - The U.S. market for Pizza Hut showed sequential gains in revenue and transactions towards the end of the quarter [21] Company Strategy and Development Direction - The company is focused on leveraging AI technology through its digital platform, Byte by Yum!, to enhance consumer experiences and operational efficiency [5][25] - Taco Bell is expanding its digital channels and loyalty programs, aiming for a 10% increase in average unit volumes by 2030 [9] - The company plans to continue its development strategy, targeting 5% unit growth for the year, with a focus on international expansion [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite economic uncertainties, highlighting Taco Bell's position as a value leader [49][50] - The company anticipates an 8% core operating profit growth for the year, with expectations for stronger profit growth in the second half [50][48] - Management noted that the competitive environment remains challenging, particularly for Pizza Hut, but emphasized ongoing innovation and value offerings [21][86] Other Important Information - The company is investing in AI technologies in partnership with NVIDIA to enhance operational performance and consumer engagement [25][90] - The recent global franchise convention showcased strong franchisee sentiment and commitment to growth [39][40] - The company received the Corporate Responsibility Award for integrating responsible business practices into its core strategies [28] Q&A Session Summary Question: Concerns about KFC International's performance - Management reassured that KFC International is recovering well, with widespread sales growth and no significant anti-American sentiment affecting performance [56][58] Question: Confidence in full-year guidance - Management expressed confidence in achieving 8% operating income growth, citing strong Q1 performance and strategic moves to drive sales [61][63] Question: Store development outlook amid macro challenges - Management remains confident in the development plan, noting strong franchisee sentiment and encouraging unit growth despite planned closures [66][69] Question: Byte technology and its future potential - Management highlighted the significant investment in digital technology and the positive impact of Byte on sales and profitability, with plans for further expansion [75][76] Question: Expansion of the Saucy concept - Management is pleased with the initial performance of the Saucy concept and is exploring avenues for expansion while ensuring supply chain and real estate scalability [78][79] Question: Future growth potential for KFC and Pizza Hut - Management acknowledged the challenges facing Pizza Hut but expressed optimism about recovery and growth potential for both KFC and Pizza Hut internationally [85][88]