NYSE$YUM

Yum Brands Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Yum! Brands reported fourth-quarter and full-year results, achieving 5% worldwide system sales growth and opening 1,853 gross units in the fourth quarter.

Yum! Brands reported strong fourth-quarter results, with worldwide system sales growing 5% and 1,853 gross units opened. The company's GAAP EPS was $1.62, and EPS excluding Special Items was $1.26. Full-year results were also strong, with 10% system sales growth and a record 4,754 gross unit openings.

  • Worldwide system sales grew 5% excluding foreign currency translation, with KFC at 7%, Taco Bell at 6%, and Pizza Hut at 1%.
  • Opened 1,853 gross units during the fourth quarter.
  • Restaurant level margins were 17.4%, up 180 basis points year-over-year.
  • Ex-special EPS was $1.26, lower year-over-year driven by a $0.23 headwind from fluctuations in our quarterly tax rate that resulted in our quarterly effective rate being above our guided range in 2023 and below our guided range in 2022.

Headline financials

Total Revenue

$2.04B

Previous: $2.02B+0.8%
EPS (adj)

$1.26

Previous: $1.31-3.8%
KFC same-store sales growth

2.0%

Previous: 5.0%-60.0%
KFC restaurant count

29.9K

Previous: 27.8K+7.7%
Taco Bell same-store sales growth

3.0%

Previous: 11.0%-72.7%
Taco Bell restaurant count

8.6K

Previous: 8.2K+4.2%
Pizza Hut same-store sales growth

-2.0%

Previous: 1.0%-300.0%
Pizza Hut restaurant count

19.9K

Previous: 19.0K+4.4%
Capital Expenditures

-$106M

Previous: $121M-187.6%
Net Income

$463M

Previous: $371M+24.8%
Operating Income

$609M

Previous: $578M+5.4%
Gross Profit

$973M

Previous: $945M+3.0%
Stock-Based Comp

$26M

Previous: $20M+30.0%

Revenue & EPS history

Yum · Revenue · Quarterly

$2.04B

Q4 2023+0.8%vs Q4 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Yum · $1.57B total across 3 segments · Q3 2023

  • KFC Division
    $700M-0.6%
  • Taco Bell Division
    $629M+10.7%
  • Pizza Hut Division
    $242M+2.1%

Forward guidance

Yum! Brands expects another strong year of global growth in 2024 and anticipates delivering their long-term growth algorithm for the year.

Tailwinds

  • Crossing 30,000 restaurants at KFC.
  • Crossing 20,000 restaurants at Pizza Hut.
  • Crossing well over 60,000 restaurants globally for Yum!
  • Further scaling incredible technology capabilities.
  • Further scaling loyalty programs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-0.0%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.5%

Avg return

30 days after

54%

39 / 72 earnings

Positive

+9.7%

Q4 2024

Best reaction

-18.5%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.4%-1.3%-5.5%
Q4 2025+0.5%+0.1%+0.8%
Q3 2025+7.5%+7.0%+4.6%
Q2 2025+0.9%+0.5%+2.3%
Q1 2025+1.9%-0.8%-2.5%
Q4 2024+9.7%+11.7%+23.8%
Q3 2024+1.2%+3.4%+4.0%
Q2 2024+2.3%+2.6%+0.9%
Q1 2024-4.4%-3.6%-2.7%
Q4 2023+2.5%+3.2%+9.7%
Q3 2023+2.8%+4.6%+5.4%
Q2 2023-0.5%-0.9%-4.9%
Q1 2023-4.6%-4.5%-5.9%
Q4 2022+1.4%+2.5%-3.7%
Q3 2022+1.1%+3.7%+9.8%
Q2 2022-1.7%-3.0%-7.7%
Q1 2022+0.5%-4.3%+3.1%
Q4 2021-0.7%-2.9%-7.0%
Q3 2021-0.7%-1.1%-1.3%
Q2 2021+7.2%+8.8%+7.4%
Q1 2021+2.1%+3.1%+3.1%
Q4 2020+0.6%-1.5%-0.4%
Q3 2020-1.8%+1.8%+12.7%
Q2 2020-4.0%-3.2%+2.8%
Q1 2020-2.1%-5.9%+1.7%
Q4 2019-4.4%-2.6%-16.3%
Q3 2019-7.3%-10.3%-8.2%
Q2 2019+4.3%+3.1%+3.8%
Q1 2019-2.5%-1.9%-2.0%
Q4 2018-0.1%-0.6%+2.2%
Q3 2018+1.8%+1.2%+6.7%
Q2 2018+3.0%+2.3%+9.3%
Q1 2018-4.6%-4.1%-5.5%
Q4 2017-1.0%-2.9%+3.5%
Q3 2017+6.2%+9.0%+12.2%
Q2 2017-2.1%-3.2%+0.0%
Q1 2017+4.0%+4.2%+11.5%
Q4 2016+2.1%+3.0%-3.4%
Q3 2016-3.2%-3.2%-7.8%
Q2 2016+2.4%+1.6%+4.3%
Q1 2016-0.5%
Q4 2015-0.0%
Q3 2015-18.5%
Q2 2015-2.4%
Q1 2015+3.6%
Q4 2014+2.2%
Q3 2014-0.9%
Q2 2014-7.4%
Q1 2014+1.0%
Q4 2013+7.3%
Q3 2013-6.9%
Q2 2013-2.0%
Q1 2013+5.2%
Q4 2012-5.8%
Q3 2012+6.1%
Q2 2012+2.3%
Q1 2012+1.4%
Q4 2011+1.0%
Q3 2011+0.2%
Q2 2011-0.9%
Q1 2011+0.5%
Q4 2010+1.7%
Q3 2010+0.8%
Q2 2010-0.3%
Q1 2009+0.2%
Q1 2010+0.5%
Q2 2009+0.2%
Q4 2009+0.2%
Q4 2007-1.5%
Q3 2008-1.5%
Q3 2009-1.5%
Q4 2008-1.5%

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