Louisville, Ky. -Stige growth in his American Taco Bell activities, important additions to his KFC restaurant counting worldwide and double digits of growth in the digital sale of the company were among the highlights for Yum! Brands in the entire year and the fourth quarter of 2024. Taco Bell and KFC remained the most important growth griders of the company with Pizza Hut that still have trouble getting a grip.
The net result in the year ending on December 31 was $ 1.49 billion, equal to $ 5.25 per share on ordinary shares, a fall of 7% of $ 1.6 billion, or $ 5.68 per share, in 2023. The total turnover was $ 7.55 billion, an increase of 7% from $ 7.08 billion in 2023. Excluding special items, the profit increased by 6% in 2024 compared to a year earlier.
“Twenty-twentieth four was marked with an exceptional growth of the business profit, given the complex consumer environment,” said David W. Gibbs, Chief Executive Officer. “Twenty-twenty-four four times again demonstrates the resilience of our business model and the agility of our world-class teams. Our twin growth engines remain strong with Taco Bell US, which in the fourth quarter yield revenue growth of 5% in the same store, so that the industry makes sense, and KFC International delivers its second consecutive year with more than 2,000 net new units. “
In the fourth quarter, Yum! Net income from brands were $ 423 million, or $ 1.51 per share, a decrease of 8% of $ 463 million, or $ 1.65, in the last quarter of 2023. The net turnover amounted to $ 2.36 billion, an increase of 16% of $ 2.04 billion in the fourth quarter last year. Excluding special items rose by 28%in the fourth quarter.
During a call with analysts 6 February, Gibbs offered a cheerful picture of the prospects for the new year.
“Looking ahead to 2025, our focus will be on finding the right balance between daily value and disruptive campaigns to involve a wider consumer base,” he said. “Moreover, we are committed to improve digital experience with improvements to our app platform that will increase involvement and put value in the consumer trip with Pizza Hut.”
Yum! Confirmed its long-term growth algorithm of 5% unit growth, 7% system turnover growth and 8% core business gain growth. Shareholders seemed impressed by the results and prospects of the company. When acting on the New York Stock Exchange on 6 February, the shares of the company rose by 10%, closed at $ 144.01 and reached a new highest point of 52 weeks.
Christopher L. Turner, Chief Financial Officer of the 2024 company, said that 4,535 new stores in all brands of the company were opened in more than 100 countries last year. The digital turnover of the company increased by 15% by digital mix of 50% “that reflects steady progress in the direction of our ambition to achieve 100% digital turnover.”
Biggs said that digital sale has risen by more than 20% with the exception of China, powered by extensive kiosk acceptance.
“With more than 50% of the stores outside of China equipped with kiosks at the end of the year 2024, our teams are aimed at reaching 70% penetration by 2026,” he said.
In connection with his digital growth bands, Yum! The launch of Byte announced by Yum!, who described it as its own software as a service (SaaS) digital ecosystem powered by artificial intelligence.
“Byte by Yum! Makes simple activities for team members and consumers, while essential systems are consolidated in a coherent, easy to manage platform, “the company said. “Byte by Yum! Is Yum’s own platform of integrated industrial leading restaurant technology, powered by AI, including mobile app and web ordering. “
Turner said that Taco Bell, KFC and Pizza Hut in the United States “are now all powered by” the byte digital ordering products.
During the fourth quarter, the turnover of the same stores increased by 8%, including 6% for KFC division, 14% for Taco Bell Division and 3% for Pizza Hut Division. Including currency, rose in the same store by 1%. The units of the company rose by 4%. The business profit rose by 8%, 17% for the business profit. Both KFC and Taco Bell enjoyed a double digit growth in the fourth quarter in the fourth quarter.
Under highlights in the fourth quarter, the company margins of the company owned the company of Taco Bell 240 basic points year after year extended to 25.5% (40 basic points were the result of an extra week versus 2023). The company added 347 new restaurants (gross) in 25 countries in 2024.
In the United States, Gibbs noticed that Yum! ‘S value leadership’ in his $ 7 luxury box, which he called ‘one of the most compelling value supply in the industry’.
As far as Pizza Hut is concerned, Gibbs said that the value competence in the Quick-Service Restaurant category in general and in particular the Pizza category weighed on the results.
“We have seen that daily value offers such as the $ 7 fans, effectively cause repeated visits from existing consumers,” he said. “In order to attract lighter dilapidated consumers, we must continue to lean further in disturbing and distinctive value promotions. Looking ahead to 2025, our focus will be on finding the right balance between daily value and disruptive campaigns to involve a wider consumer base. Moreover, we are committed to improve the digital experience with improvements to our app platform that will increase involvement and put value to the consumer trip with Pizza Hut. “
After years of strengthening the balance sheets, Yum! Brands has reached a point that the company will pause its debt reduction, Turner said.
“Given our constant trust in the future trajectory of YUM! And that our leverage is driven with a full turn, we intend to deliver material higher capital returns in the past two years,” he said. “In particular, and subject to market conditions, we expect to stop Deleveraging and maintain our net lever ratio at about four times during the medium term by blaming incremental debt as our company grows.”
He said that the move is consistent with the aim of the company to maximize the returns of the shareholders while retaining a strong balance sheet and paying a competitive dividend.
In his winning announcement, Yum! said that in January it his franchise agreements with franchisee ended Gida as (is GIDA), the owner and operator of KFC and Pizza Hut restaurants in Turkey, stating Gida’s’ failure to meet Yum! The standards of brands. “
“The termination affects 284 KFC and 254 Pizza Hut restaurants in Turkey,” the company said. “Yum! Brands actively identifies the right growth franchise partner to stimulate future success in Turkey.”
During the call, Gibbs said that it was unlikely that the developments in Turkey would significantly influence! Results in 2025.