Yum! Brands Reports First-Quarter Results
Record Digital System Sales Mix of Over 50%
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DAVID GIBBS COMMENTS
FIRST-QUARTER HIGHLIGHTS
-
Worldwide system sales grew 2%, excluding foreign currency translation, with
KFC at 4%,Taco Bell at 4% andPizza Hut (4)%. - Unit count increased 6% driven by 808 gross new units.
-
Digital sales approached
$8 billion , with record digital mix over 50%. - GAAP operating profit declined 1% and core operating profit grew 6%.
-
Foreign currency translation unfavorably impacted divisional operating profit by
$11 million .
Reported Results |
% Change |
||||
|
System Sales Ex F/X |
Same-Store Sales |
Units |
GAAP Operating Profit |
Core Operating Profit1 |
KFC Division |
+4 |
(2) |
+8 |
+3 |
+6 |
|
+4 |
+1 |
+3 |
+2 |
+2 |
|
(4) |
(7) |
+5 |
(11) |
(10) |
Worldwide |
+2 |
(3) |
+6 |
(1) |
+6 |
|
First-Quarter |
||
|
2024 |
2023 |
% Change |
GAAP EPS |
|
|
+5 |
Less Special Items EPS1 |
|
|
NM |
EPS Excluding Special Items |
|
|
+9 |
1 See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Core Operating Profit and Special Items. |
All comparisons are versus the same period a year ago. |
|
System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further details. |
|
Digital system sales includes all transactions at system restaurants where consumers utilize ordering interaction that is primarily facilitated by automated technology. |
KFC DIVISION
|
First-Quarter |
|||
|
|
|
%/ppts Change |
|
|
2024 |
2023 |
Reported |
Ex F/X |
Restaurants |
30,251 |
28,003 |
+8 |
N/A |
System Sales ($MM) |
8,128 |
8,057 |
+1 |
+4 |
Same-Store Sales Growth (%) |
(2) |
+9 |
NM |
NM |
Franchise and Property Revenues ($MM) |
397 |
412 |
(4) |
(1) |
Operating Profit ($MM) |
313 |
305 |
+3 |
+6 |
Operating Margin (%) |
49.5 |
44.4 |
+5.1 |
+5.8 |
|
First-Quarter (% Change) |
|
|
International |
|
System Sales Growth Ex F/X |
+6 |
(8) |
Same-Store Sales Growth |
(2) |
(7) |
- KFC Division opened 509 gross new restaurants across 43 countries.
-
Foreign currency translation unfavorably impacted operating profit by
$10 million .
KFC Markets1 |
Percent of System Sales2 |
System Sales Growth Ex F/X |
First-Quarter (% Change) |
||
|
27% |
+8 |
|
15% |
(8) |
|
11% |
+7 |
|
10% |
(5) |
|
7% |
+4 |
|
7% |
+22 |
|
6% |
(1) |
|
6% |
(5) |
|
5% |
+11 |
|
2% |
+8 |
|
2% |
+2 |
|
2% |
+12 |
1Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets. |
2Reflects Full Year 2023. |
|
First-Quarter |
|||
|
|
|
%/ppts Change |
|
|
2024 |
2023 |
Reported |
Ex F/X |
Restaurants |
8,555 |
8,276 |
+3 |
N/A |
System Sales ($MM) |
3,597 |
3,464 |
+4 |
+4 |
Same-Store Sales Growth (%) |
+1 |
+8 |
NM |
NM |
Franchise and Property Revenues ($MM) |
210 |
201 |
+5 |
+5 |
Operating Profit ($MM) |
208 |
204 |
+2 |
+2 |
Operating Margin (%) |
34.8 |
35.6 |
(0.8) |
(0.8) |
-
Taco Bell Division opened 56 gross new restaurants across 14 countries. -
Taco Bell U.S. system sales grew 4% andTaco Bell International system sales excluding foreign currency grew 6%. -
Taco Bell U.S. same-store sales grew 2% andTaco Bell International same-store sales declined 2%. - Company-owned restaurant margins were 22.5%, slightly above the first quarter last year.
|
First-Quarter |
|||
|
|
|
%/ppts Change |
|
|
2024 |
2023 |
Reported |
Ex F/X |
Restaurants |
19,942 |
19,046 |
+5 |
N/A |
System Sales ($MM) |
3,167 |
3,336 |
(5) |
(4) |
Same-Store Sales Growth (%) |
(7) |
+7 |
NM |
NM |
Franchise and Property Revenues ($MM) |
148 |
155 |
(5) |
(4) |
Operating Profit ($MM) |
93 |
104 |
(11) |
(10) |
Operating Margin (%) |
39.0 |
41.2 |
(2.2) |
(1.7) |
|
First-Quarter (% Change) |
|
|
International |
|
System Sales Growth Ex F/X |
(3) |
(6) |
Same-Store Sales Growth |
(8) |
(6) |
-
Pizza Hut Division opened 240 gross new restaurants across 23 countries. -
Foreign currency translation unfavorably impacted operating profit by
$1 million .
|
Percent of System Sales2 |
System Sales Growth Ex F/X |
First-Quarter (% Change) |
||
|
41% |
(6) |
|
18% |
(1) |
|
13% |
(4) |
|
12% |
(5) |
|
6% |
+3 |
|
5% |
(8) |
|
3% |
+4 |
|
2% |
(1) |
1Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets. |
2Reflects Full Year 2023. |
HABIT BURGER GRILL DIVISION
-
The Habit Burger Grill Division opened 3 gross new restaurants this quarter. -
The Habit Burger Grill Division system sales declined 2% with same-store sales declining 8%.
OTHER ITEMS
- 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.
-
During the quarter ended
March 31, 2024 , we sold our ownership interest in Devyani International Limited for pre-tax proceeds of$104 million and recognized pre-tax investment losses of$20 million related to changes in fair value during the quarter prior to the date of sale. -
On
April 29th, 2024 , we completed the previously announced acquisition of 218KFC franchise restaurants in theU.K. andIreland . -
Disclosures pertaining to outstanding debt in our
Restricted Group capital structure will be provided at the time of the filing of the first-quarter Form 10-Q.
CONFERENCE CALL
The call will be available for playback beginning at
The webcast and the playback can be accessed by visiting
ADDITIONAL INFORMATION ONLINE
Quarter-end dates for each division, restaurant count details, definitions of terms and
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
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 deterioration in public health conditions associated with COVID-19, or the occurrence of other catastrophic or unforeseen events; the success of our concepts’ franchisees; 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; 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; our ability to successfully 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, such as AB1228 in
Category: Earnings
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