YUM! Brands' Q4 Earnings & Revenues Beat Estimates, Rise Y/Y

YUM! Brands, Inc. YUM reported fourth-quarter 2024 results, with adjusted earnings and total revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The company’s top-line performance reflected solid contributions from the KFC, Pizza Hut and Taco Bell divisions. The company reported progress in the digital space, with digital sales rising approximately 15% and the digital mix surpassing 50%, moving closer to its long-term goal of 100% digital sales. It strengthened its digital ecosystem with the launch of Byte by Yum!, a proprietary SaaS platform, to streamline restaurant operations through integrated technology solutions.Following the earnings release, YUM stock inched up 3% in the pre-market trading session.YUM’s Q4 Earnings and Revenue DiscussionIn the quarter under review, YUM reported adjusted earnings per share (EPS) of $1.61, beating the Zacks Consensus Estimate of $1.58 by 1.9%. The bottom line increased 28% from $1.26 reported in the year-ago quarter.Yum! Brands, Inc. Price, Consensus and EPS Surprise Yum! Brands, Inc. price-consensus-eps-surprise-chart | Yum! Brands, Inc. QuoteQuarterly revenues of $2.36 billion beat the consensus mark of $2.32 billion by 1.8%. The top line rose 16% on a year-over-year basis.Worldwide system sales — excluding foreign currency translation — grew 8% year over year, with Taco Bell increasing 14% and KFC rising 6%. The metric rose 3% year over year for Pizza Hut.Divisional Performance of YUMYUM! Brands primarily announces results under four divisions: KFC, Pizza Hut, Taco Bell and Habit Burger Grill.KFC: Revenues at the KFC division totaled $965 million, up 27% year over year. Our model predicted the metric to increase 18% from a year ago. During the quarter, the segment’s comps growth was flat compared with the 2% gain reported in the prior-year quarter.The division’s operating margin contracted 430 basis points (bps) year over year to 39%. In the quarter, the KFC division opened 1,100 gross new restaurants.Pizza Hut: This division’s revenues amounted to $293 million, up 4% year over year. Our model predicted the metric to increase 5.1% from the prior-year level. Comps decreased 1% year over year compared with the 2% fall reported in the year-ago quarter.The division’s operating margin contracted 260 bps year over year to 32.4%. Pizza Hut division opened 512 gross new restaurants during the fourth quarter.Taco Bell: The quarterly revenues of this division were $930 million, up 14% year over year. Our model predicted the metric to increase 7.6% from the year-earlier level. Comps increased 5% year over year compared with 3% reported in the prior-year quarter.The division’s operating margin expanded 160 bps year over year to 36.5%. Taco Bell opened 186 gross new restaurants.Habit Burger Grill: The division’s revenues amounted to $192 million, compared with $175 million reported in the prior year quarter. Our model predicted the metric to increase 9.1% year over year.During the quarter, the segment’s comps growth was flat against the 4% decline reported in the prior-year quarter. In the quarter, the division opened six gross new restaurants.Other Financial Details of YUM! BrandsAs of Dec. 31, 2024, the company’s cash and cash equivalents totaled $616 million compared with $512 million at 2023-end. Long-term debt, as of the end of the fourth quarter, was $11.3 billion compared with $11.14 billion at 2023-end.The company declared a 6% dividend hike to 71 cents per share, payable on March 7, 2025, to its shareholders of record as of Feb. 21, 2025.YUM 2024 HighlightsTotal revenues in 2024 amounted to $7.5 billion compared with $7.1 billion in 2023.Net Income in 2024 totaled $1.49 billion compared with $1.6 billion in 2023.In 2024, adjusted EPS came in at $5.48 compared with $5.17 reported in the previous year.YUM’s Zacks Rank & Key PicksYUM! Brands currently has a Zacks Rank #4 (Sell).Some better-ranked stocks in the Zacks Retail – Restaurants industry are:Brinker International, Inc. EAT presently sports a Zacks Rank #1 (Strong Buy). EAT has a trailing four-quarter earnings surprise of 24.7%, on average. The stock has surged 321.9% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.The consensus estimate for EAT’s fiscal 2025 sales and EPS indicates growth of 17.2% and 92.9%, respectively, from the year-ago period’s levels.Kura Sushi USA, Inc. KRUS currently sports a Zacks Rank of 1. KRUS has a trailing four-quarter negative earnings surprise of 70.8%, on average. The stock has declined 20.6% in the past year.The Zacks Consensus Estimate for KRUS’ 2025 sales and EPS indicates a rise of 18.3% and 237.5%, respectively, from the year-ago period’s levels.Potbelly Corporation PBPB currently carries a Zacks Rank #2 (Buy). PBPB has a trailing four-quarter earnings surprise of 67.5%, on average. The stock has gained 7.4% in the past year.The consensus estimate for PBPB’s 2025 sales and EPS indicates growth of 4.3% and 12.5%, respectively, from the year-ago period’s levels.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yum! Brands, Inc. (YUM): Free Stock Analysis Report Brinker International, Inc. (EAT): Free Stock Analysis Report Potbelly Corporation (PBPB): Free Stock Analysis Report Kura Sushi USA, Inc. 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