Dec 31, 2023

Yum Q4 2023 Earnings Report

Yum! Brands reported fourth-quarter and full-year results, achieving 5% worldwide system sales growth and opening 1,853 gross units in the fourth quarter.

Key Takeaways

Yum! Brands reported strong fourth-quarter results, with worldwide system sales growing 5% and 1,853 gross units opened. The company's GAAP EPS was $1.62, and EPS excluding Special Items was $1.26. Full-year results were also strong, with 10% system sales growth and a record 4,754 gross unit openings.

Worldwide system sales grew 5% excluding foreign currency translation, with KFC at 7%, Taco Bell at 6%, and Pizza Hut at 1%.

Opened 1,853 gross units during the fourth quarter.

Restaurant level margins were 17.4%, up 180 basis points year-over-year.

Ex-special EPS was $1.26, lower year-over-year driven by a $0.23 headwind from fluctuations in our quarterly tax rate that resulted in our quarterly effective rate being above our guided range in 2023 and below our guided range in 2022.

Total Revenue
$2.04B
Previous year: $2.02B
+0.8%
EPS
$1.26
Previous year: $1.31
-3.8%
KFC Same Store Sales Growth
2%
Previous year: 5%
-60.0%
Taco Bell Same Store Sales Growth
3%
Previous year: 11%
-72.7%
Pizza Hut Same Store Sales Growth
-2%
Previous year: 1%
-300.0%
Gross Profit
$973M
Previous year: $945M
+3.0%
Cash and Equivalents
$512M
Previous year: $367M
+39.5%
Free Cash Flow
$342M
Previous year: $331M
+3.3%
Total Assets
$6.23B
Previous year: $5.85B
+6.6%

Yum

Yum

Yum Revenue by Segment

Forward Guidance

Yum! Brands expects another strong year of global growth in 2024 and anticipates delivering their long-term growth algorithm for the year.

Positive Outlook

  • Crossing 30,000 restaurants at KFC.
  • Crossing 20,000 restaurants at Pizza Hut.
  • Crossing well over 60,000 restaurants globally for Yum!
  • Further scaling incredible technology capabilities.
  • Further scaling loyalty programs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income