Fourth-Quarter Same-Store Sales Growth at Taco
Bell of 5%; KFC International Unit Growth of 8%
Full-Year GAAP Operating Profit of 4% and Core
Operating Profit Growth Excluding 53rd Week of 8%
Yum! Brands, Inc. (NYSE: YUM) today reported results for the
fourth quarter and year ended December 31, 2024. Fourth-quarter
GAAP EPS was $1.49 and EPS excluding Special Items was $1.61.
Full-year GAAP EPS was $5.22 and EPS excluding Special Items was
$5.48, an increase of 6%.
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DAVID GIBBS & CHRIS TURNER
COMMENTS
David Gibbs, CEO, said “2024 was marked with exceptional core
operating profit growth given the complex consumer environment.
2024 again demonstrates the resilience of our business model and
the agility of our world-class teams. Our twin growth engines
remain strong with Taco Bell U.S. delivering same-store sales
growth of 5% in the fourth quarter, meaningfully outpacing the
industry, and KFC International delivering its second consecutive
year with over 2,000 net new units. Our advantaged brand position,
together with our industry-leading talent, franchisees, and
technology, position us for another excellent year in 2025.”
Chris Turner, CFO, said “In 2024, we opened 4,535 new stores
across more than 100 countries. Our digital progress this year was
similarly enviable, with digital sales up approximately 15% and
digital mix surpassing 50%, reflecting steady progress towards our
ambition to reach 100% digital sales. Today, we are excited to
announce Byte by Yum!, our proprietary Software as a Service
digital ecosystem. Launching our integrated and comprehensive suite
required standardization of our processes and consolidation of
teams, which we accomplished as part of last year’s endeavors to
remove duplicative efforts, establish centers of excellence, and
drive greater efficiency and collaboration across the organization.
I’m confident the changes we’ve made and investments we’re making
position us to be stronger and more agile. For those reasons and
more, we expect 2025 to be another on-algorithm year for Core
Operating Profit growth."
RECENT STRATEGIC
ANNOUNCEMENTS
- Today, we announced Byte by Yum!, a comprehensive
collection of proprietary Software as a Service (SaaS) AI-driven
products that deliver integrated and seamless technologies for our
restaurants. Byte by Yum! enables easy operations for team members
and consumers, while consolidating essential systems into a
cohesive, easy-to-manage platform. Byte by Yum! is Yum!’s owned
platform of integrated industry-leading restaurant technology,
powered by AI, that includes mobile app and web ordering, point of
sale, kitchen and delivery optimization, menu management, inventory
and labor management, and team member tools. Currently, 25,000 Yum!
restaurants across the world are using at least one Byte by Yum!
product.
- In January, Yum! Brands announced the promotion of Scott
Mezvinsky to KFC Division Chief Executive Officer, effective
March 1, 2025. Scott is currently President of Taco Bell North
America and International.
- In December, we opened our first test locations of new and
innovative concepts. We opened Saucy by KFC, a
flavor-forward dining destination offering chicken tender lovers
the chance to customize their meal with 11 irresistible sauces.
Always made hot, fresh and crispy, Saucy’s tenders pair perfectly
with sweet, spicy, savory and smoky global flavors, all
complemented by an 11-beverage lineup that includes a variety of
teas, freezes and refreshers. Taco Bell opened Live Más Cafe, a new
beverage concept where Bellristas provide exceptional flavor and
hospitality in a cozy, inviting atmosphere, all while maintaining
the great value customers love. Additionally, in December, Pizza
Hut unveiled a test of a new restaurant design, with
self-service kiosks, a guest-facing pizza-making station, and a
drive-thru with a “Hut ‘N Go™” menu for quick orders.
SUMMARY FINANCIAL TABLE
Fourth-Quarter
Full-Year
2024
2023
% Change
2024
2023
% Change
GAAP EPS
$1.49
$1.62
(8)
$5.22
$5.59
(7)
Special Items EPS1
$(0.12)
$0.36
NM
$(0.26)
$0.42
NM
EPS Excluding Special Items
$1.61
$1.26
+28
$5.48
$5.17
+6
1 See reconciliation of Non-GAAP
Measurements to GAAP Results in our Consolidated Summary of Results
for further detail of Special Items.
All comparisons are versus the same period
a year ago. Our fourth-quarter and full-year 2024 results include
an extra week ("53rd week") for business units operating on a
weekly periodic calendar. All results presented herein include this
53rd week unless otherwise noted.
System sales growth figures exclude
foreign currency translation ("F/X") and core operating profit
growth figures exclude F/X and Special Items. Special Items are not
allocated to any segment and therefore only impact worldwide GAAP
results. See reconciliation of Non-GAAP Measurements to GAAP
Results in our Consolidated Summary of Results for further
details.
Digital system sales includes all
transactions where consumers at system restaurants utilize ordering
interaction that is primarily facilitated by automated
technology.
FOURTH-QUARTER
HIGHLIGHTS
- Worldwide system sales grew 8% excluding foreign currency
translation, with KFC at 6%, Taco Bell at 14%, and Pizza Hut at
3%.
- We opened 1,804 gross units leading to 5% year-over-year unit
growth excluding the 120 unit divestiture in the second quarter
related to stores under the Jeno's Pizza and Telepizza brands.
- Strong digital system sales exceeding $9 billion with digital
mix over 50%.
% Change
System Sales
Ex F/X
Same-Store Sales
Units
GAAP
Operating Profit
Core
Operating Profit1
KFC Division
+6
Even
+7
+14
+15
Taco Bell Division
+14
+5
+2
+19
+19
Pizza Hut Division
+3
(1)
+2
(4)
(3)
Worldwide
+8
+1
+4
+8
+17
Results Excluding 53rd Week %
Change
System Sales
Ex F/X
Core
Operating Profit1
KFC Division
+5
+12
Taco Bell Division
+8
+12
Pizza Hut Division
Even
(7)
Worldwide
+5
+12
FULL-YEAR HIGHLIGHTS
- Worldwide system sales grew 4% excluding foreign currency
translation, with KFC at 3%, Taco Bell at 8%, and Pizza Hut
(1)%.
- We opened 4,535 gross units during the year.
- Foreign currency translation unfavorably impacted divisional
operating profit by $28 million.
% Change
System Sales
Ex F/X
Same-Store Sales
Units
GAAP
Operating Profit
Core
Operating Profit1
KFC Division
+3
(2)
+7
+4
+6
Taco Bell Division
+8
+4
+2
+11
+11
Pizza Hut Division
(1)
(4)
+2
(5)
(3)
Worldwide
+4
(1)
+4
+4
+9
Results Excluding 53rd Week %
Change
System Sales
Ex F/X
Core
Operating Profit1
KFC Division
+3
+5
Taco Bell Division
+6
+9
Pizza Hut Division
(1)
(4)
Worldwide
+3
+8
1See reconciliation of Non-GAAP
Measurements to GAAP Results in our Consolidated Summary of Results
for further detail of Core Operating Profit and Core Operating
Profit excluding 53rd week.
KFC DIVISION
Fourth-Quarter
Full-Year
%/ppts Change
%/ppts Change
2024
2023
Reported
Ex F/X
2024
2023
Reported
Ex F/X
Restaurants
31,981
29,900
+7
NA
31,981
29,900
+7
NA
System Sales ($MM)
9,429
8,888
+6
+6
34,452
33,863
+2
+3
Same-Store Sales Growth (%)
Even
+2
NM
NM
(2)
+7
NM
NM
Franchise & Property Revenues
($MM)
466
444
+5
+5
1,685
1,698
(1)
+1
Operating Profit ($MM)
377
329
+14
+15
1,363
1,304
+4
+6
Operating Margin (%)
39.0
43.3
(4.3)
(3.8)
44.0
46.1
(2.1)
(1.6)
Fourth-Quarter (%
Change)
Full-Year (% Change)
International
U.S.
International
U.S.
System Sales Growth Ex F/X
+8
(1)
+5
(5)
Same-Store Sales Growth
+1
(5)
(2)
(5)
- KFC Division opened 1,100 gross new restaurants during the
quarter.
- For the year, KFC Division opened 2,892 gross new restaurants
across 97 countries.
- For the quarter, the 53rd week provided a benefit of one
percentage point to system sales growth and three percentage points
to core operating profit growth. For the year, the 53rd week
provided a negligible benefit to system sales growth and a benefit
of one percentage point to core operating profit growth.
- Foreign currency translation unfavorably impacted operating
profit by $1 million for the quarter and $22 million for the
year.
KFC Markets1
Percent of KFC
System Sales2
System Sales Growth Ex
F/X
Fourth-Quarter
(% Change)
Full-Year
(% Change)
China
27%
+5
+6
United States
14%
(1)
(5)
Europe (excluding United Kingdom)
12%
+10
+8
Asia
9%
+1
(5)
Latin America
8%
+13
+15
Australia
7%
+11
+6
United Kingdom
6%
+5
(1)
Middle East / Turkey / North Africa
6%
+21
(2)
Africa
5%
+14
+11
Thailand
2%
+3
+6
Canada
2%
+11
+6
India
2%
+10
+10
1Refer to
investors.yum.com/financial-information/financial-reports/ for a
list of the countries within each of the markets.
2Reflects Full Year 2024.
TACO BELL DIVISION
Fourth-Quarter
Full-Year
%/ppts Change
%/ppts Change
2024
2023
Reported
Ex F/X
2024
2023
Reported
Ex F/X
Restaurants
8,757
8,564
+2
NA
8,757
8,564
+2
NA
System Sales ($MM)
5,571
4,887
+14
+14
17,193
15,915
+8
+8
Same-Store Sales Growth (%)
+5
+3
NM
NM
+4
+5
NM
NM
Franchise & Property Revenues
($MM)
319
281
+13
+13
997
918
+9
+9
Operating Profit ($MM)
340
286
+19
+19
1,049
944
+11
+11
Operating Margin (%)
36.5
34.9
1.6
1.7
36.7
35.8
0.9
0.9
- Taco Bell Division opened 186 gross new restaurants during the
quarter.
- For the year, Taco Bell Division opened 347 gross new
restaurants across 25 countries.
- Taco Bell U.S. system sales grew 14% and Taco Bell
International system sales excluding foreign currency grew 10% for
the quarter.
- For the year, Taco Bell U.S. system sales grew 8% and Taco Bell
International system sales excluding foreign currency grew 6%.
- Taco Bell U.S. same-store sales grew 5% and Taco Bell
International same-store sales grew 3% for the quarter.
- For the year, Taco Bell U.S. same-store sales grew 4% and Taco
Bell International same-store sales were flat.
- For the quarter, the 53rd week provided a benefit of six
percentage points to system sales growth and seven percentage
points to core operating profit growth for the quarter. For the
year, the 53rd week provided a benefit of two percentage points to
both system sales growth and core operating profit growth.
- For the quarter, company-owned restaurant margins were 25.5%, a
240 basis point increase year-over-year. The 53rd week provided a
benefit of 40 basis points to company-owned restaurant margins for
the quarter.
- For the year, company-owned restaurant margins were 24.4%, a 70
basis point increase year-over-year. The 53rd week provided a
benefit of 10 basis points to company-owned restaurant margins for
the year.
PIZZA HUT DIVISION
Fourth-Quarter
Full-Year
%/ppts Change
%/ppts Change
2024
2023
Reported
Ex F/X
2024
2023
Reported
Ex F/X
Restaurants
20,225
19,866
+2
NA
20,225
19,866
+2
NA
System Sales ($MM)
3,617
3,535
+2
+3
13,108
13,315
(2)
(1)
Same-Store Sales Growth (%)
(1)
(2)
NM
NM
(4)
+2
NM
NM
Franchise & Property Revenues
($MM)
176
168
+4
+5
622
622
Even
+1
Operating Profit ($MM)
95
99
(4)
(3)
373
391
(5)
(3)
Operating Margin (%)
32.4
35.0
(2.6)
(2.4)
37.0
38.3
(1.3)
(0.9)
Fourth-Quarter (%
Change)
Full-Year (% Change)
International
U.S.
International
U.S.
System Sales Growth Ex F/X
+2
+3
(1)
Even
Same-Store Sales Growth
Even
(2)
(5)
(3)
- Pizza Hut Division opened 512 gross new restaurants during the
quarter.
- For the year, Pizza Hut Division opened 1,280 gross new
restaurants across 62 countries.
- For the quarter, the 53rd week provided a benefit of three
percentage points to system sales growth and four percentage points
to core operating profit growth. For the year, the 53rd week
provided a negligible benefit to system sales growth and a benefit
of one percentage point to core operating profit growth.
- Foreign currency translation unfavorably impacted operating
profit by $1 million for the quarter and $6 million for the
year.
Pizza Hut Markets1
Percent of Pizza Hut
System Sales2
System Sales Growth Ex
F/X
Fourth-Quarter
(% Change)
Full-Year
(% Change)
United States
42%
+3
Even
China
18%
+7
+3
Asia
13%
Even
(3)
Europe
11%
(7)
(6)
Latin America
7%
(4)
Even
Middle East / Africa
4%
+20
Even
Canada
3%
+10
+6
India
2%
+10
+4
THE HABIT BURGER GRILL
DIVISION
- The Habit Burger Grill Division opened 6 gross new restaurants
during the quarter and 16 for the year.
- The Habit Burger Grill Division grew system sales 10% for the
quarter and 2% for the year.
- The Habit Burger Grill Division same-store sales were flat for
the quarter and declined (4)% for the year.
- For the quarter, the 53rd week provided a benefit of five
percentage points to system sales growth. For the year, the 53rd
week provided a benefit of one percentage point to system sales
growth.
OTHER ITEMS
- The Company's Board of Directors approved a dividend of $0.71
per share of common stock, an increase of 6%. The quarterly
dividend will be distributed March 7, 2025 to shareholders of
record at the close of business on February 21, 2025.
- In January, Yum! Brands terminated its franchise agreements
with franchisee IS Gida A.S. (IS Gida), the owner and operator of
KFC and Pizza Hut restaurants in Turkey after failure to meet Yum!
Brands’ standards. The termination affects 284 KFC and 254 Pizza
Hut restaurants in Turkey. Yum! Brands is actively identifying the
right growth-minded franchise partner to drive future success in
Turkey.
- See reconciliation of Non-GAAP Measurements to GAAP results
within this release for further detail of Special Items by
financial statement line item including the impact of Special Items
on General and administrative expenses.
- Disclosures pertaining to outstanding debt in our Restricted
Group capital structure will be provided at the time of the filing
of the 2024 Form 10-K.
LONG-TERM GROWTH
ALGORITHM
- The Company targets the following long-term financial
performance metrics, first announced in 2022, that it believes it
can achieve over an extended period of time, on average:
- 5% Unit Growth
- 7% System Sales Growth, excluding F/X and 53rd week; and
- At least 8% Core Operating Profit Growth, excluding F/X and
53rd week3
1Refer to
investors.yum.com/financial-information/financial-reports/ for a
list of the countries within each of the markets.
2Reflects Full Year 2024.
3At this time, we are unable to forecast
any Special Items or any impact from changes in F/X rates, and
therefore cannot provide an estimate of Operating Profit Growth on
a GAAP basis.
CONFERENCE CALL
Yum! Brands, Inc. will host a conference call to review the
company's financial performance and strategies at 8:15 a.m. Eastern
Time Thursday, February 6, 2025. The number is 833/470-1428 in the
U.S., 833/950-0062 in Canada and +1/929-526-1599 for international
callers, conference ID 951337.
The call will be available for playback beginning at 10:00 a.m.
Eastern Time February 6, 2025 through February 13, 2025. To access
the playback, dial 866/813-9403 in the U.S., 226/828-7578 in
Canada, and +1/929-458-6194 internationally, conference ID
189157.
The webcast and the playback can be accessed via the website by
visiting Yum! Brands' website,
investors.yum.com/events-and-presentations and selecting "Q4 2024
Earnings Conference Call.”
ADDITIONAL INFORMATION
ONLINE
Quarter end dates for each division, restaurant count details,
definitions of terms and Restricted Group financial information are
available at investors.yum.com. Reconciliation of non-GAAP
financial measures to the most directly comparable GAAP measures
are included within this release.
FORWARD-LOOKING
STATEMENTS
This announcement may contain “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. We intend all
forward-looking statements to be covered by the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements generally can be identified by the fact
that they do not relate strictly to historical or current facts and
by the use of forward-looking words such as “expect,”
“expectation,” “believe,” “anticipate,” “may,” “could,” “intend,”
“belief,” “plan,” “estimate,” “target,” “predict,” “likely,”
“seek,” “project,” “model,” “ongoing,” “will,” “should,”
“forecast,” “outlook” or similar terminology. These statements are
based on and reflect our current expectations, estimates,
assumptions and/ or projections, our perception of historical
trends and current conditions, as well as other factors that we
believe are appropriate and reasonable under the circumstances.
Forward-looking statements are neither predictions nor guarantees
of future events, circumstances or performance and are inherently
subject to known and unknown risks, uncertainties and assumptions
that could cause our actual results to differ materially from those
indicated by those statements. There can be no assurance that our
expectations, estimates, assumptions and/or projections, including
with respect to the future earnings and performance or capital
structure of Yum! Brands, will prove to be correct or that any of
our expectations, estimates or projections will be achieved.
Numerous factors could cause our actual results and events to
differ materially from those expressed or implied by
forward-looking statements, including, without limitation: food
safety and food- or beverage-borne illness concerns; adverse
impacts of health epidemics, deterioration in public health
conditions or the occurrence of other catastrophic or unforeseen
events; the success and financial stability of our concepts’
franchisees, particularly in light of challenging macroeconomic
conditions; the success of our development strategy; anticipated
benefits from past or potential future acquisitions, investments,
other strategic transactions or initiatives, or our portfolio
business model; our significant exposure to the Chinese market; our
global operations and related exposure to geopolitical instability,
including as a result of the Middle East conflict as well as
potential expansion of restrictive trade policies; foreign currency
risks and foreign exchange controls; our ability to protect the
integrity or availability of IT systems or the security of
confidential information and other cybersecurity risks; compliance
with data privacy and data protection legal requirements and
reporting obligations; our ability to successfully and securely
implement technology initiatives, including utilization of
artificial intelligence; our increasing dependence on digital
commerce platforms; the impact of social media; our ability to
protect our trademarks or other intellectual property; shortages or
interruptions in the availability and the delivery of food,
equipment and other supplies; the loss of key personnel, labor
shortages and increased labor costs, including as a result of state
and local legislation related to wages and working conditions;
changes in food prices and other operating costs; our corporate
reputation, the value and perception of our brands and changes in
consumer preferences and wellness trends; evolving expectations and
requirements with respect to social and environmental
sustainability matters; adverse effects of severe weather and
climate change; pending or future litigation and legal claims or
proceedings; changes in, or noncompliance with, legal requirements;
tax matters, including changes in tax rates or laws, impositions of
new taxes, tax implications of our restructurings, or disagreements
with taxing authorities; changes in consumer discretionary spending
and macroeconomic conditions, including inflationary pressures and
elevated interest rates; competition within the retail food
industry; risks relating to our level of indebtedness. In addition,
other risks and uncertainties not presently known to us or that we
currently believe to be immaterial could affect the accuracy of any
such forward-looking statements. All forward-looking statements
should be evaluated with the understanding of their inherent
uncertainty. The forward-looking statements included in this
announcement are only made as of the date of this announcement and
we disclaim any obligation to publicly update any forward-looking
statement to reflect subsequent events or circumstances.
You should consult our filings with the Securities and Exchange
Commission (including the information set forth under the captions
“Risk Factors” and “Forward-Looking Statements” in our most
recently filed Annual Report on Form 10-K and Quarterly Report on
Form 10-Q) for additional detail about factors that could affect
our financial and other results.
Yum! Brands, Inc., based in Louisville, Kentucky, and its
subsidiaries franchise or operate a system of over 61,000
restaurants in more than 155 countries and territories under the
company’s concepts – KFC, Taco Bell, Pizza Hut and Habit Burger
& Grill. The Company's KFC, Taco Bell and Pizza Hut brands are
global leaders of the chicken, Mexican-inspired food and pizza
categories, respectively. Habit Burger & Grill is a fast casual
restaurant concept specializing in made-to-order chargrilled
burgers, sandwiches and more. In 2024, Yum! was named to the Dow
Jones Sustainability Index North America, Newsweek’s list of
America’s Most Responsible Companies, USA Today’s America’s Climate
Leaders and 3BL’s list of 100 Best Corporate Citizens. In 2025, the
Company was recognized among TIME magazine’s list of Best Companies
for Future Leaders. In addition, KFC, Taco Bell and Pizza Hut
brands were ranked in the top 25 of Entrepreneur’s Top Global
Franchises Ranking for 2025, with Taco Bell securing the No. 1 spot
for the fifth consecutive year.
Category: Earnings
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250205909067/en/
Analysts are invited to contact: Matt Morris, Head of Investor
Relations, at 888/298-6986
Members of the media are invited to contact: Lori Eberenz,
Director, Public Relations, at 502/874-8200
Yum Brands (NYSE:YUM)
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