Yum! Brands Reports Fourth-Quarter and Full-Year Results

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%

LOUISVILLE, Ky.--(BUSINESS WIRE)-- 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%.

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

Source: Yum! Brands, Inc.