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Yum! Brands 8-K Report, Financial Results (Feb 6, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 6, 2025
Period End
February 6, 2025
Security
YUM
In the record · 2016–202610-K1110-Q328-K146

YUM filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 146 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jun ’17Jun ’17
  2. Material agreement8-K · Apr ’20Apr ’20
  3. Leadership change8-K · Dec ’22Dec ’22
  4. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed February 6, 2025. Cited figures are marked; the original filing is the authoritative source.

Yum!

Brands, Inc. filed this Form 8-K under Item 2.02 to furnish a press release (Exhibit 99.1) reporting results for the quarter and year ended December 31, 2024. The filing reports fourth-quarter GAAP EPS of $1.49a and EPS excluding Special Items of $1.61, and full-year GAAP EPS of $5.22 and EPS excluding Special Items of $5.48, an increase of 6%. Fourth-quarter worldwide system sales grew 8% excluding foreign currency translation, with Taco Bell at 14%, KFC at 6% and Pizza Hut at 3%.

Full-year worldwide system sales grew 4%b excluding foreign currency translation, and worldwide Core Operating Profit grew 9% on a reported basis and 8% excluding the 53rd week. Both periods include an extra week for business units on a weekly calendar. Management highlighted Taco Bell U.S. same-store sales growth of 5% in the fourth quarter and KFC International opening over 2,000 net new units for a second consecutive year.

The company opened 4,535 gross units during 2024 and reported digital sales up approximately 15% with digital mix above 50%. The company also announced Byte by Yum!, a proprietary software-as-a-service digital ecosystem, and the board approved a quarterly dividend of $0.71c per share, an increase of 6%.

Management expects 2025 to be another on-algorithm year for Core Operating Profit growth. The filing also reports the termination of franchise agreements with IS Gida A.S. covering 284 KFC and 254 Pizza Hut restaurants in Turkey, and states that disclosures on Restricted Group debt will come with the 2024 Form 10-K.

02—Key points

Key Highlights

  1. Q4 2024 GAAP EPS of $1.49 (down 8% from $1.62); EPS excluding Special Items of $1.61 (up 28% from $1.26).
  2. Full-year 2024 GAAP EPS of $5.22 (down 7% from $5.59); EPS excluding Special Items of $5.48 (up 6% from $5.17).
  3. Worldwide system sales grew 8% in Q4 and 4% for the full year, excluding foreign currency translation; Taco Bell led with 14% in Q4.
  4. Taco Bell U.S. same-store sales grew 5% in Q4; KFC Division same-store sales were flat in Q4 and declined 2% for the full year.
  5. Full-year 2024 total revenues of $7.55 billion (up 7%) and net income of $1.49 billion (down 7%), with Special Items of $141 million in operating profit.
  6. Byte by Yum! launched as a proprietary SaaS digital platform, used by 25,000 restaurants; quarterly dividend raised to $0.71 per share.
  7. Franchise terminated in Turkey (IS Gida A.S.), affecting 284 KFC and 254 Pizza Hut restaurants; the company is seeking a new franchise partner.

03—Questions

Frequently Asked Questions

  1. Why did GAAP EPS decline while EPS excluding Special Items increased?

    Fourth-quarter GAAP EPS was $1.49 versus $1.62 a year earlier, while EPS excluding Special Items rose to $1.61 from $1.26. The filing shows Special Items were an expense of $(0.12) per share in Q4 2024 versus a benefit of $0.36 per share in Q4 2023. Q4 2024 Special Items included $61 million of German acquisition and Turkey termination-related costs and $21 million of resource optimization charges.

  2. How much did the 53rd week contribute to 2024 results?

    The 53rd week added $36 million to operating profit, which is excluded from Core Operating Profit excluding the 53rd week of $2.54 billion. Excluding the 53rd week and Special Items, diluted EPS was $5.39 for the full year. Full-year worldwide system sales ex-F/X grew 4%, or 3% excluding the 53rd week.

  3. What is the outlook for 2025?

    Management said it expects 2025 to be another on-algorithm year for Core Operating Profit growth. The company's long-term targets are 5% unit growth, 7% system sales growth excluding F/X and the 53rd week, and at least 8% Core Operating Profit growth excluding F/X and the 53rd week. The company stated it cannot forecast Special Items or F/X impacts, so it cannot estimate GAAP operating profit growth.

  4. What is the impact of terminating the Turkey franchise agreements?

    On January 8, 2025, Yum! terminated its franchise agreements with IS Gida A.S., affecting 284 KFC and 254 Pizza Hut restaurants in Turkey. The company recorded $37 million in Other (income) expense, $18 million in franchise and property revenues and $6 million in G&A related to the Turkey termination and German master franchise re-acquisition, all treated as Special Items. The company is identifying a new franchise partner for Turkey.

  5. What is Byte by Yum! and what does it mean for investors?

    Byte by Yum! is a proprietary Software as a Service digital ecosystem that includes mobile app and web ordering, point of sale, kitchen and delivery optimization, menu management, and inventory and labor management tools, powered by AI. Currently, 25,000 Yum! restaurants use at least one Byte by Yum! product. The filing does not quantify any financial impact from the platform.

04—Continue

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