01—Abstract
Summary
Summary of the 8-K filed August 6, 2024. Cited figures are marked; the original filing is the authoritative source.
Yum!
Brands, Inc. reported second-quarter 2024 results for the quarter ended June 30, 2024, in a press release attached as Exhibit 99.1 to this Form 8-K. Worldwide system sales grew 3%a excluding foreign currency translation, including a 1% same-store sales decline. GAAP operating profit grew 6% and core operating profit grew 10%.
GAAP diluted EPS was $1.28b versus $1.46 a year earlier, and EPS excluding Special Items was $1.35 versus $1.41, a decline the company attributed to a higher current-year tax rate and lower investment income. By division, Taco Bell led growth with system sales up 7% ex-F/X, same-store sales up 5%, and operating profit up 10%. KFC system sales grew 2% ex-F/X despite a 3% same-store sales decline, with unit count up 8%.
Pizza Hut system sales were flat ex-F/X, with same-store sales down 3%c. Management said it continues to expect at least 8% core operating profit growth for the full year, based on first-half results.
The release also noted that approximately 120 Jeno's and Telepizza branded restaurant units were removed from Pizza Hut's global unit count following a June 2024 trademark rights transfer in Colombia and Chile. Disclosures on outstanding debt in the Restricted Group capital structure are to be provided with the second-quarter Form 10-Q.
02—Key points
Key Highlights
- Worldwide system sales grew 3% excluding F/X, with a 1% same-store sales decline; unit count increased 5% including 894 gross new units in the quarter.
- GAAP operating profit grew 6% to $607 million, and core operating profit grew 10% to $645 million.
- GAAP diluted EPS was $1.28 versus $1.46 a year earlier; EPS excluding Special Items was $1.35 versus $1.41, reflecting a $0.20 negative impact from a higher tax rate and lower investment income.
- Taco Bell Division system sales grew 7% ex-F/X with same-store sales up 5%, and operating profit rose 10% to $250 million.
- KFC Division system sales grew 2% ex-F/X, but same-store sales declined 3%; the division opened 598 gross new restaurants across 57 countries.
- Pizza Hut Division system sales were flat ex-F/X, with same-store sales down 3%; operating profit rose 4% to $94 million.
- Management expects at least 8% core operating profit growth for full-year 2024; digital sales were nearly $8 billion with digital mix over 50%.
03—Questions
Frequently Asked Questions
What were Yum! Brands' main second-quarter 2024 results?
Worldwide system sales grew 3% excluding F/X, GAAP operating profit grew 6%, and core operating profit grew 10%. GAAP diluted EPS was $1.28, and EPS excluding Special Items was $1.35.
Why did EPS excluding Special Items decline year over year?
The company attributed a $0.20 negative impact to a higher current-year tax rate and lower investment income. Foreign currency translation also unfavorably affected EPS by $0.03.
How did each brand perform in the quarter?
Taco Bell system sales grew 7% ex-F/X with same-store sales up 5%. KFC system sales grew 2% ex-F/X with same-store sales down 3%. Pizza Hut system sales were flat ex-F/X with same-store sales down 3%.
What is management's outlook for 2024?
Based on first-half results, management continues to expect at least 8% core operating profit growth for the full year 2024.
Will there be additional disclosures about debt?
Disclosures pertaining to outstanding debt in the Restricted Group capital structure will be provided at the time of the filing of the second-quarter Form 10-Q.
04—Continue