In This Article:
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System Sales Growth (Q4): 4% year-over-year.
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Same-Store Sales Index (Q4): Improved to 99% of prior year levels.
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Core Operating Profit Growth (Q4): 35% year-over-year.
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Net New Stores Opened (2024): 1,751, ending the year with 1,395 stores.
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Adjusted Operating Profit (2024): $1.2 billion.
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Diluted EPS Growth (2024): 22% year-over-year.
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KFC System Sales Growth (2024): 6% year-over-year.
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KFC Net New Stores (2024): 1,352, total store count 11,648.
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KFC Delivery Sales Growth (2024): 16% year-over-year.
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Pizza Hut Core Operating Profit Growth (Q4): More than tripled year-over-year.
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Pizza Hut Same-Store Transactions Growth (2024): 5% year-over-year.
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Restaurant Margin (Q4): 12.3%, 160 basis points higher year-over-year.
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Operating Profit (Q4): $151 million, 35% growth year-over-year.
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Net Income (Q4): $115 million, 17% growth year-over-year.
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Free Cash Flow (2024): $740 million.
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Net Cash (End of 2024): $2.8 billion.
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Quarterly Dividend Increase: 50%, from $0.16 to $0.24.
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Capital Expenditure (2024): $705 million.
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Expected Net New Stores (2025): 1,600 to 1,800.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Yum China Holdings Inc (NYSE:YUMC) achieved a record-breaking year in 2024, with system sales growing by 4% year-over-year in the fourth quarter, outperforming the industry.
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The company opened a record 1,751 net new stores in 2024, ending the year with 1,395 stores, and plans to reach 20,000 stores by 2026.
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KFC's delivery sales grew by 16%, continuing a decade-long double-digit annual growth momentum, and KCOFFEE sales increased by 30%.
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Pizza Hut's core operating profit more than tripled in the fourth quarter and grew 19% for the full year, with same-store transactions increasing by 5%.
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Yum China Holdings Inc (NYSE:YUMC) returned $1.5 billion to shareholders in 2024, including $248 million in quarterly cash dividends and $1.24 billion in share repurchases.
Negative Points
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Despite positive transaction growth, the company faces a challenging environment with value-minded consumers.
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The average ticket price for KFC in the fourth quarter was 4% lower than the prior year, indicating pressure on pricing.
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Pizza Hut's ticket average was 10% lower year-over-year, reflecting the brand's strategy to become more mass-market, which may impact profitability.
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Yum China Holdings Inc (NYSE:YUMC) anticipates ongoing wage inflation in 2025, which could pressure labor costs.
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The company faces headwinds in cost of labor due to increased delivery mix, despite efforts to improve operational efficiency.