Q2 2024 Yum! Brands Inc Earnings Call Transcript
Key Points
- Yum Brands Inc (YUM) delivered a 10% growth in core operating profit for the second quarter.
- Taco Bell U.S. achieved a 7% increase in system sales, driven by innovative menu items like Cantina Chicken.
- KFC International reported a mid single-digit increase in same-store sales, excluding China and markets impacted by the Middle East conflict.
- Digital sales across Yum Brands Inc (YUM) grew significantly, with KFC digital sales (excluding China) up nearly 20% and Taco Bell's loyalty sales up over 30%.
- Yum Brands Inc (YUM) opened 894 units in the second quarter, contributing to a 5% year-over-year unit growth.
- Same-store sales for KFC were down 3%, largely due to the Middle East conflict and underperformance in the U.S. market.
- Pizza Hut's international same-store sales remained negative, partly due to a stalled recovery in Malaysia and Indonesia.
- The Middle East conflict continued to pressure system sales growth, affecting markets beyond the immediate conflict zone.
- Habit Burger Grill experienced a 1% decline in system sales, with same-store sales growth remaining suppressed.
- Foreign currency translation had a $12 million negative impact on reported operating profit for the quarter.
Hello. Welcome to the Yum! Brands 2024 second quarter earnings call. My name is Lauren, and I'll be coordinating your call today. (Operator Instructions) I will now hand you over to Matt Morris, Head of Investor Relations. To begin, please go ahead.
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Thanks, operator. Good morning, everyone, and thank you for joining us. On our call today are David Gibbs, our CEO; Chris Turner, our CFO; and Dave Russell, Senior Vice President and Corporate Controller. Following the remarks from David and Chris, we'll open the call to questions.
Before we get started, please note that this call include forward-looking statements that are subject to future events and uncertainties that could cause our actual results to differ materially from these statements. All forward looking statements are made only as of the date of this call should be considered in conjunction with the cautionary statements on our earnings release and the risk factors included in our filings with the SEC. In
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