Yum Brands Stock Price, News & Analysis

Yum! Brands, Inc. (NYSE: YUM) reported a strong Q1 2021, with worldwide system sales rising 11% and same-store sales up 9%. GAAP EPS rose to $1.07, a 67% increase year-over-year. All divisions saw sales growth, with KFC and Taco Bell both reporting 11% increases. The company opened 435 new units, reflecting solid demand and development. CEO David Gibbs highlighted advancements in digital and marketing capabilities through strategic acquisitions. However, challenges remain due to the ongoing COVID-19 impact in various regions.

Pizza Hut has launched The Hut Lane™, a dedicated digital order pick-up window, at over 1,500 locations as part of its adaptation to evolving customer preferences during the pandemic. This initiative allows customers to conveniently place digital orders and pick them up without leaving their vehicles. The Hut Lane is part of Pizza Hut's long-term strategy to modernize customer experiences, emphasizing safety and speed. Franchise owner Flynn Restaurant Group plans to prioritize this feature in many of its stores, enhancing operational efficiency and customer satisfaction.

Kentucky Fried Chicken (KFC) is donating one million pieces of chicken to support seniors affected by the COVID-19 pandemic, partnering with Meals on Wheels America. This initiative, running through May, will provide boneless chicken breast filets to help combat food insecurity among homebound seniors. KFC franchisees will contribute additional cases of chicken to local programs. Additionally, KFC is honoring volunteers with 11,000 gift cards. This marks KFC's third significant donation since the pandemic began, following previous donations to frontline workers and educators.

Yum! Brands has acquired Tictuk Technologies, an Israeli omnichannel ordering and marketing platform. This acquisition enhances Yum!’s digital capabilities, allowing customers to order through popular social media channels such as WhatsApp and Facebook Messenger. With Tictuk's technology, the company aims to improve customer engagement and drive digital sales, which reached $17 billion in 2020, a 45% increase year-over-year. Yum! plans to deploy Tictuk’s platform globally, building on its strategy of enhancing restaurant economics and customer experiences.

Yum! Brands announced the refinancing of approximately $3.4 billion in existing loan facilities. The new financing includes a $1.5 billion term loan B, a $750 million term loan A, and a $1.25 billion revolving credit facility. The new loans carry varying interest rates based on LIBOR or base rates, with spreads of 1.00%-1.75%. The amendment eases certain restrictions and introduces a financial maintenance covenant with a leverage ratio not exceeding 5.00:1.00, adjustable under specific circumstances. Proceeds will repay existing loans and cover transaction costs.

Pizza Hut launched a nostalgic marketing campaign named "Newstalgia," blending classic themes with modern twists. The initiative features a collaboration with PAC-MAN, introducing a limited-edition PAC-MAN box that includes an augmented reality game. Customers can win a custom PAC-MAN arcade cabinet by participating in a sweepstakes linked to the game. Actor Craig Robinson is the new spokesperson, starring in a TV commercial. The campaign aims to reconnect with past customers while engaging a new generation through iconic imagery and promotions.

Yum! Brands (NYSE: YUM) announced that CFO Chris Turner will participate in the J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum on March 11, 2021, at 9:30 a.m. ET. The event will be available for live streaming on the Yum! Brands website. Headquartered in Louisville, Kentucky, Yum! Brands operates over 50,000 restaurants in more than 150 countries, boasting brands such as KFC, Pizza Hut, and Taco Bell. The company has received accolades like inclusion in the 2021 Bloomberg Gender-Equality Index and recognition in the Dow Jones Sustainability Index North America.

Yum! Brands (NYSE: YUM) has committed to comprehensive reporting on the systemic impacts of antibiotic use in its supply chain by the end of 2021. Following discussions with The Shareholder Commons, the shareholder proposal by Paul Rissman was withdrawn. The agreement mandates Yum! to assess the costs of antimicrobial resistance (AMR) in its sustainability reports and disclose findings related to antibiotic use in animal husbandry. AMR poses significant global health risks, potentially leading to 10 million deaths annually by 2050 and a $54 trillion hit to the economy.