In This Article:
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Core Operating Profit: Up 8%, driven by Taco Bell US and KFC International.
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Taco Bell US Same-Store Sales: Increased by 9%.
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Taco Bell US Operating Profit: Increased by 16%.
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KFC International Same-Store Sales: Growth with low single-digit traffic increase.
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KFC International Store Openings: 524 gross openings across 50+ countries.
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KFC Division System Sales: Grew by 5%, with 6% unit growth and 2% same-store sales growth.
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Pizza Hut System Sales: Declined by 3% in Q1.
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Habit Burger & Grill System Sales: Growth was flat for the quarter.
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Digital Sales: Increased by 12% year over year.
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First Quarter System Sales Growth: 5%, driven by 3% same-store sales growth and 3% unit growth.
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Ex-special EPS: $1.30.
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Reported EPS: $0.90, including an unfavorable tax impact.
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Net Capital Expenditures: $56 million.
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Share Repurchase: Approximately 1.56 million shares for $228 million.
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Net Leverage Ratio: Ended the quarter at 3.9 times.
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New Store Openings: 751 new stores in Q1 across 68 countries.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Yum Brands Inc (NYSE:YUM) reported an 8% increase in core operating profit, driven by strong performances from Taco Bell US and KFC International.
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Taco Bell US achieved a 9% increase in same-store sales, with significant expansion in consumer penetration and digital momentum.
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KFC International posted strong same-store sales growth and brand perception gains, with 524 gross openings across over 50 countries.
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The company's AI-powered digital platform, Byte by Yum!, is enhancing operational efficiency and consumer engagement, contributing to digital sales growth.
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Yum Brands Inc (NYSE:YUM) announced a strategic partnership with NVIDIA to accelerate AI technology development, positioning the company at the forefront of restaurant innovation.
Negative Points
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Pizza Hut experienced a 3% decline in system sales, primarily due to disappointing same-store sales performance in the US.
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The company faced strategic closures in Turkey and within Pizza Hut, impacting overall unit development.
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Yum Brands Inc (NYSE:YUM) reported a $24 million special expense related to its resource optimization program and brand headquarters consolidation.
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The macroeconomic environment remains uncertain, with geopolitical challenges potentially impacting international operations.
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Despite strong performances from Taco Bell and KFC, the company faces intense competition and a challenging consumer environment in the US.