Yum! Brands, Inc.
Yum! Brands, Inc. and its subsidiaries franchise or operate a system of over 55,000 restaurants in more than 155 countries and territories under the company’s concepts – KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill.
The Company’s KFC, Taco Bell, and Pizza Hut brands are global leaders in the chicken, Mexican-style food, and pizza categories, respectively.
The Habit Burger Grill is a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches, and more.
Employees: 36,000+
Revenue: $6.842B for FY2022
HQ Location: Louisville, Kentucky, US
Their brands:
KFC
KFC is a global chicken restaurant brand with a rich, decades-long history of success and innovation. It all started with one cook, Colonel Harland Sanders, who created a finger-lickin’ good recipe more than 75 years ago—a list of 11 secret herbs and spices scratched out on the back of his kitchen door. Today, they still follow his formula for success, with real cooks breading and freshly preparing their delicious chicken by hand in more than 27,000 restaurants in over 145 countries and territories around the world.
Pizza Hut
Pizza Hut has grown to become the largest pizza company in the world. They have more than 19,000 restaurants in over 100 countries. No matter where you find them, they are making sure each meal their customers enjoy is delicious, bold, and one-of-a-kind.
Taco Bell
They have grown to be a culture-centric, lifestyle brand that provides crave-able, affordable Mexican-inspired food with bold flavors. Not only do they provide breakthrough value, but they also offer quality ingredients and are the first QSR restaurant to offer American Vegetarian Association (AVA)-certified menu items.
Taco Bell and its more than 350 franchise organizations operate over 7,200 restaurants that serve more than 40 million customers each week in the U.S. Internationally, the brand is growing with more than 1,000 restaurants across over 30 countries across the globe.
The Habit Burger Grill
The Habit is a burger-centric fast-casual restaurant that offers the unique flavors of chargrilling over an open flame in a variety of freshly made and flavorful award-winning burgers, sandwiches, salads, and more. At the core of The Habit is their commitment to a ‘quality-first’ mindset. They call it ‘The Habit Difference.'
Their vision and priorities:
Building global, iconic brands people trust and champion
Their Recipe for Good Growth strategy includes four growth drivers and three good drivers, and is the foundation on which their sustainable, long-term results are built.
These drivers allow them to keep their promises to serve delicious food, make their food accessible to customers, give employees a place to grow and make a difference, offer opportunities for franchisees and deliver strong returns and long-term value.
These growth capabilities are the key drivers of same-store sales and net-new unit growth and serve as their guiding principles in all business decisions.
Their growth drivers are:
Unrivaled Culture & Talent
Leveraging their people-first culture to fuel brand performance and franchisee successBold Restaurant Development
Driving market and franchise unit expansion with strong economicsUnmatched Operating Capability
Recruiting and equipping the best restaurant operators in the world to deliver great customer experiencesRelevant, Easy & Distinctive Brands
Innovating and elevating iconic restaurant brands that people trust and champion
Things to know right now
Russia Update
Yum! entered into a sale and purchase agreement to transfer ownership of their Russian KFC restaurants, operating system, and master franchise rights, including the network of KFC, franchised restaurants, to Smart Service Ltd., a business operated by one of their existing KFC franchisees in Russia. Under the agreement, the buyer will be responsible for rebranding locations to a non-Yum! concept and retaining employees in Russia. Completion of the transaction is subject to regulatory and governmental approvals, as well as other conditions. Following the completion of the transaction, they will have ceased their corporate presence in Russia.
Ransomware attack
In January they experienced a ransomware attack. The attack disrupted operations at fewer than 300 restaurants in one market for one day. Store operations were otherwise uninterrupted, and impacted information technology systems have largely been restored. They incurred some incremental expenses relating to the remediation and investigation of the attack, but they do not expect such expenses to be material and do not otherwise expect this incident to have a material adverse impact on their business, operations, or financial results.
Operating Business Segment:
KFC Division
Taco Bell Division
Pizza Hut Division
The Habit Burger Grill Division
Competitors
Chipotle Mexican Grill
McDonald's
Domino's Pizza
Restaurant Brands International
Darden Restaurants,
Texas Roadhouse
Wendy's Company
Chick-fil-A.
Their financial calendar
Q1: February-April - Around 3rd May 2023
Q2: May-July - Around 3rd August 2023
Q3: August -October - Around 2nd November 2023
Q4: November -January - Around 8th February 2023
Next Earnings Report:
Around 3rd May 2023
Positives from the last earnings report Q4FY22:
Worldwide system sales grew 8% excluding foreign currency translation, with KFC at 6%, Taco Bell at 14%, and Pizza Hut at 4%.
They added 1,830 gross units during the fourth quarter.
They repurchased 4.1 million shares totaling $486 million at an average price per share of $119.
Per Division:
KFC Division
opened 997 gross new restaurants during the quarter.
Ex-China same-store sales grew 9% for the quarter.
Taco Bell Division
Taco Bell Division opened 253 gross new restaurants during the quarter.
Taco Bell U.S. system sales grew 14% and Taco Bell International system sales grew 23% for the quarter.
Taco Bell U.S. same-store sales grew 11% and Taco Bell International same-store sales grew 4% for the quarter.
Company-owned restaurant margins were approximately 23% for the quarter.
Pizza Hut Division
Pizza Hut Division opened 571 gross new restaurants during the quarter.
Pizza Hut International's ex-China same-store sales grew 4% for the quarter.
The Habit Burger Grill
The Habit Burger Grill Division grew system sales 12% for the quarter and the year.
The Habit Burger Grill Division opened 9 gross new restaurants during the quarter.
Challenges from the last earnings report Q4FY22:
Foreign currency translation unfavorably impacted divisional operating profit by $42 million.
Per Division
KFC Division
As a result of their decision to exit the Russia business, fourth-quarter KFC Division and KFC International system sales growth were each negatively impacted by 4 percentage points.
KFC Division's operating profit growth excluding foreign currency was negatively impacted by 3 percentage points.
Taco Bell Division
Foreign currency translation unfavorably impacted operating profit by less than $1 million for the quarter
Pizza Hut Division
Foreign currency translation unfavorably impacted operating profit by $8 million for the quarter.
The Habit Burger Grill
The Habit Burger Grill Division same-store sales declined 1% for the quarter
Highlights in FY22:
Worldwide system sales grew 6% excluding foreign currency translation, with KFC at 6%, Taco Bell at 11%, and Pizza Hut at 3%.
They added a record 4,560 gross units during the year.
They repurchased 10 million shares totaling $1.2 billion at an average price per share of $119.
Per Division
KFC Division
KFC Division opened 2,447 gross new restaurants in 103 countries.
For the year, ex-China same-store sales grew 9%.
Taco Bell Division
For the year, Taco Bell Division opened 496 gross new restaurants in 24 countries.
For the year, Taco Bell U.S. system sales grew 10% and Taco Bell International system sales grew 29%.
For the year, Taco Bell U.S. same-store sales grew 8% and Taco Bell International same-store sales grew 7%
Pizza Hut Division
For the year, Pizza Hut Division opened 1,584 gross new restaurants in 73 countries.
For the year, ex-China same-store sales grew 6%.
The Habit Burger Grill
The Habit Burger Grill Division opened 33 gross new restaurants.
Challenges in FY22:
Foreign currency translation unfavorably impacted divisional operating profit by $118 million.
Per Division:
KFC Division
Foreign currency translation unfavorably impacted operating profit by $34 million for the quarter and $98 million for the year.
Taco Bell Division
Foreign currency translation unfavorably impacted operating profit by less than $2 million for the year.
Pizza Hut Division
Foreign currency translation unfavorably impacted operating profit by $18 million for the year.
The Habit Burger Grill
The Habit Burger Grill Division same-store sales declined 1% for the year.