Q3 2024 Yum! Brands Inc Earnings Call Transcript
Key Points
- Yum Brands Inc (YUM) achieved a 3% year-over-year profit growth despite a challenging global consumer environment.
- Taco Bell U.S. posted a 4% increase in same-store sales, outperforming the industry and gaining significant market share.
- KFC International delivered 9% year-over-year unit growth, leading all major competitors and expanding in 64 countries.
- Digital sales at Taco Bell grew by 30% year-over-year, driven by innovations like the cheesy Street to Lupus marketing.
- Yum Brands Inc (YUM) surpassed 60,000 restaurants worldwide, with significant development milestones and strong franchisee investment.
- The global macroeconomic environment remains complex, impacting sales in regions like the Middle East, Indonesia, and Malaysia.
- KFC same-store sales in the Middle East declined between 15% and 45% due to regional conflicts, affecting financial health in some areas.
- Pizza Hut experienced a 1% decline in system sales, with a 4% drop in same-store sales due to competitive pressures.
- The company faced increased closures, particularly in markets affected by the Middle East conflict and in China, impacting net new unit growth.
- Yum Brands Inc (YUM) tempered its Q4 expectations due to unmet sales targets in key markets like China and the Middle East.
Welcome everyone to the Yum! Brands Inc 2024, third quarter earnings call. My name is Laurie, and I'll be coordinating your call today. There will be an opportunity for questions at the end of the presentation.
If you would like to ask a question, please press star one on your telephone keypad. We kindly ask that you limit yourself to one question only. I will now hand you over to Mark Morris, Head of Investor Relations. To begin, please go ahead.
!-
Thanks, operator. Good morning, everyone, and thank you for joining us.
On our call today are David Gibbs, our Chief Executive Officer, Chris Turner, our Chief Financial Officer, and David Russell, our Senior Vice President Finance and Corporate Controller. Following remarks from David and Chris will open the call to questions.
Before we get started, please note that this call includes forward looking statements that are subject to future events and uncertainties that could cause our actual results to differ
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