On August 6, 2024, Yum Brands Inc (YUM, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Yum Brands, a US-based restaurant operator, features a portfolio of four brands: KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill. With $64 billion in 2023 systemwide sales, the firm is the second-largest restaurant company in the world.
Performance Overview
Yum Brands Inc (YUM, Financial) reported a mixed performance for Q2 2024. The company achieved a GAAP EPS of $1.28, slightly below the analyst estimate of $1.34. However, EPS excluding special items was $1.35, surpassing expectations. Revenue for the quarter was $1,805.40 million, matching the estimated $1,805.40 million.
Key Financial Achievements
Despite the challenging environment, Yum Brands Inc (YUM, Financial) reported several notable financial achievements:
- Worldwide system sales grew 3%, excluding foreign currency translation.
- GAAP operating profit increased by 6%, while core operating profit grew by 10%.
- Robust digital sales of nearly $8 billion, with a digital mix over 50%.
Income Statement Highlights
Yum Brands Inc (YUM, Financial) reported the following key metrics for Q2 2024:
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| GAAP EPS | $1.28 | $1.46 | (12%) |
| EPS Excluding Special Items | $1.35 | $1.41 | (4%) |
| System Sales Growth Ex F/X | 3% | N/A | N/A |
| Same-Store Sales Growth | (1%) | N/A | N/A |
Segment Performance
Yum Brands Inc (YUM, Financial) operates through several key divisions, each contributing to the overall performance:
- KFC Division: System sales grew 2%, with an 8% increase in unit count. However, same-store sales declined by 3%.
- Taco Bell Division: System sales grew 7%, with a 5% increase in same-store sales.
- Pizza Hut Division: System sales remained flat, with a 3% decline in same-store sales.
CEO Commentary
David Gibbs, CEO, stated, “I’m incredibly pleased with how well our teams have managed through a challenging operating environment to deliver a 10% increase in Core Operating Profit. Our twin growth engines of Taco Bell U.S. and KFC International combined delivered 5% system sales growth led by 8% unit growth.”
Challenges and Future Outlook
Yum Brands Inc (YUM, Financial) faced several challenges during the quarter, including a higher tax rate and lower investment income, which negatively impacted EPS by $0.20. Foreign currency translation also unfavorably impacted EPS by $0.03. Despite these challenges, the company remains optimistic about future growth, driven by its digital and technology initiatives.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Yum Brands Inc for further details.
