Yum! Brands (YUM) Q4 2024 earnings summary

Executive summary

• Achieved 8% core operating profit growth for the full year, driven by digital transformation, strong brand performance, and operational efficiencies.

• Digital sales grew 15% year-over-year, surpassing 50% of total system sales and exceeding $30 billion in 2024.

• Opened 4,535 new stores in 2024 across more than 100 countries, surpassing 60,000 global units.

• Launched Byte by Yum!, a proprietary SaaS platform integrating digital ordering, restaurant management, and AI-driven insights.

• Taco Bell U.S. generated over $1 billion in core operating profit for the first time.

Financial highlights

• System-wide sales grew 5% in Q4 and 4% for the year ex-FX, driven by 5% net new unit growth and 1% same-store sales growth.

• Full-year net new unit growth was 5%, with same-store sales down 1% due to Middle East conflict impacts.

• Core operating profit grew 12% in Q4 and 8% for the year; ex-special EPS for Q4 was $1.61, and full-year EPS rose 6% to $5.48 (excluding special items and 53rd week).

• Restaurant-level margins improved to 17.6% in Q4 and 16.8% for the year; Taco Bell achieved 24.4% full-year margin, Habit improved to 10.1%.

• Q4 total revenues increased 16% to $2.36B; full-year revenues rose 7% to $7.55B.

Outlook and guidance

• Expecting 2025 core operating profit growth to meet the long-term 8% target.

• Full-year unit growth in 2025 projected at 4–5% (excluding one-time Turkey closures), with Q1 reflecting 538 unit exits in Turkey and 200 additional Pizza Hut closures.

• Targets long-term average annual unit growth of 5%, system sales growth of 7% ex-FX, and at least 8% core operating profit growth ex-FX and ex-53rd week.

• G&A expected to rise low single digits, or mid-single digits including incentive comp reset.

• Interest expense forecasted at $500–$520 million; tax rate expected to be 22–24%.