Yum! Brands Q4 Earnings: Revenue Meets Expectations, Earnings Beat
Financial Highlights:
* Revenue: $2.36 billion, in line with analyst estimates
* Adjusted EPS: $1.61, exceeding consensus by 0.9%
* Same-store sales: 1% year-over-year growth
* Operating margin: 27.8%, down from 29.9% last year
* Free cash flow margin: 17.2%, comparable to last year
Q4 Highlights:
* Management projects "on-algorithm" Core Operating Profit growth of at least 8% in 2025.
* Locations increased to 60,963, up from 58,708 in the previous quarter.
Company Overview:
Yum! Brands, headquartered in Louisville, Kentucky, is a multinational restaurant corporation with over 60,000 locations worldwide. Its portfolio includes renowned brands such as KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill.
Sales Growth:
Over the past five years, Yum! Brands has experienced moderate sales growth of 6.2% per year, driven by a combination of new restaurant openings and increased sales at existing locations.
Restaurant Performance:
* Number of Restaurants: Yum! Brands operates over 60,000 restaurants, with rapid expansion in recent years.
* Same-Store Sales: The company's same-store sales have grown by 2.4% per year on average, indicating healthy demand for its offerings.
Key Takeaways:
* Yum! Brands met revenue and same-store sales expectations in Q4.
* Adjusted EPS surpassed analyst estimates by a modest margin.
* Management remains optimistic about future growth prospects.
Investment Opportunity:
Whether Yum! Brands represents an attractive investment opportunity at the current price depends on factors such as its valuation, competitive landscape, and long-term growth prospects. A comprehensive research report is available here for further analysis.