Yum! Brands, Inc. (YUM) Bundle
A Brief History of YUM! Brands, Inc.
Company Overview
YUM! Brands, Inc. is a global leader in the quick-service restaurant (QSR) sector, known for its iconic brands including KFC, Taco Bell, and Pizza Hut. As of September 30, 2024, YUM! operates over 60,000 restaurants worldwide, with a significant portion of its units being franchise-operated.
Financial Performance
As of the third quarter of 2024, YUM! reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Income | $382 million | $416 million | $1,063 million | $1,134 million |
| Total Revenues | $1,826 million | $1,708 million | $5,187 million | $5,040 million |
| Operating Profit | $619 million | $613 million | $1,746 million | $1,709 million |
| Diluted EPS | $1.35 | $1.46 | $3.73 | $3.97 |
Franchise Growth and Unit Count
YUM! Brands has demonstrated robust growth in franchise units. As of September 30, 2024, the company had:
| Type | Unit Count (2024) | Unit Count (2023) | % Change |
|---|---|---|---|
| Franchise Units | 58,775 | 56,269 | +4% |
| Company-Owned Units | 1,270 | 1,005 | +26% |
| Total Units | 60,045 | 57,274 | +5% |
Segment Performance
YUM! Brands' segments have shown varied performance:
| Division | Q3 2024 System Sales | Q3 2023 System Sales | Same-Store Sales Growth (Decline) % (Q3 2024) |
|---|---|---|---|
| KFC | $8,669 million | $8,620 million | (4%) |
| Taco Bell | $4,008 million | $3,804 million | +4% |
| Pizza Hut | $3,184 million | $3,243 million | (4%) |
| Habit Burger & Grill | $161 million | $163 million | (5%) |
Debt and Liquidity Position
YUM! Brands' total debt as of September 30, 2024, amounted to approximately $11 billion, with a fixed interest rate of about 4.5%. The company maintains a liquidity position supported by:
- Cash on hand: $460 million
- Revolving facility available: $1.5 billion
- Net cash provided by operating activities: $1,176 million
Recent Developments
In 2024, YUM! Brands faced challenges due to geopolitical issues affecting its operations in the Middle East. Currently, approximately 275 restaurants in these markets are temporarily closed. The company is actively working with franchisees to stabilize operations in impacted areas.
Investment activities included the sale of a 5% stake in Devyani International for $104 million and the acquisition of KFC restaurants in the U.K. and Ireland, which amounted to $174 million.
A Who Owns Yum! Brands, Inc. (YUM)
Ownership Structure
As of September 30, 2024, Yum! Brands, Inc. (YUM) has a diverse ownership structure primarily comprising institutional investors, mutual funds, and individual shareholders. The majority of shares are held by institutional investors, reflecting a trend in large publicly traded companies.
| Shareholder Type | Percentage of Ownership |
|---|---|
| Institutional Investors | 87% |
| Mutual Funds | 40% |
| Individual Investors | 13% |
Major Institutional Shareholders
As of the latest data, the following institutional investors hold significant shares in Yum! Brands:
| Institution | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 29.9 | 10.68% |
| BlackRock, Inc. | 29.7 | 10.63% |
| State Street Corporation | 19.5 | 7.11% |
| Fidelity Investments | 15.1 | 5.39% |
| Invesco Ltd. | 10.5 | 3.77% |
Recent Shareholder Activities
Yum! Brands has been active in share repurchases, with a total of $991 million in net cash used for financing activities in 2024, reflecting an increase from $921 million in 2023. This activity is primarily driven by higher current year share repurchases.
Financial Overview
For the year to date ending September 30, 2024, Yum! Brands reported the following financial highlights:
| Metric | Value |
|---|---|
| Total Revenues | $5.187 billion |
| Net Income | $1.063 billion |
| Diluted Earnings Per Share (EPS) | $3.73 |
| Operating Profit | $1.746 billion |
Market Performance
Yum! Brands’ stock performance has shown resilience, with a year-over-year growth in system sales reported at $16.022 billion for the quarter ended September 30, 2024, compared to $15.830 billion in the same period in 2023.
Conclusion on Ownership Trends
As of September 30, 2024, Yum! Brands continues to exhibit a strong institutional ownership presence, with significant investments from major asset managers. The company's financial performance, coupled with strategic share repurchase activities, reflects a robust approach to maximizing shareholder value.
Yum! Brands, Inc. (YUM) Mission Statement
Yum! Brands, Inc. aims to be the world’s most loved, trusted, and fastest-growing restaurant brand. The company’s mission is to build a better future by serving delicious food, providing exceptional customer service, and creating a positive impact on communities and the environment.
Financial Overview
As of September 30, 2024, Yum! Brands reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Income | $382 million | $416 million | $1,063 million | $1,134 million |
| GAAP EPS | $1.35 | $1.46 | $3.73 | $3.97 |
| Total Revenue | $1,826 million | $1,708 million | $5,187 million | $5,040 million |
| Operating Profit | $619 million | $613 million | $1,746 million | $1,709 million |
| Company Sales | $621 million | $510 million | $1,667 million | $1,495 million |
| Franchise and Property Revenues | $804 million | $796 million | $2,350 million | $2,351 million |
| Franchise Contributions for Advertising | $401 million | $402 million | $1,170 million | $1,194 million |
Operational Metrics
Yum! Brands operates a vast network of restaurants across various segments. The company’s unit counts and operational metrics as of September 30, 2024, are as follows:
| Division | Franchise Units | Company-Owned Units | Total Units |
|---|---|---|---|
| KFC | 30,684 | 459 | 31,143 |
| Taco Bell | 19,920 | 7 | 19,927 |
| Pizza Hut | 19,927 | 7 | 19,934 |
| Habit Burger & Grill | 381 | 0 | 381 |
| Total | 71,912 | 473 | 72,385 |
Growth and Market Presence
As of September 30, 2024, Yum! Brands has expanded its global presence significantly:
- Total System Sales: $16,054 million
- Total Franchise Sales: $44,952 million
- Same-Store Sales Growth: 1% (reported), 2% (excluding FX)
- System Sales Growth: 1% (reported), 2% (excluding FX)
Debt and Financing
Yum! Brands maintains a robust financial structure with significant cash flows and manageable debt levels:
| Debt Instrument | Amount (in millions) |
|---|---|
| Total Debt Outstanding | $11,169 |
| Revolving Facility Outstanding | $210 |
| Fixed Debt Percentage | 96% |
| Effective Interest Rate | 4.5% |
Cash Flow and Liquidity
Yum! Brands reported strong cash flow metrics:
- Net Cash Provided by Operating Activities: $1,176 million (2024)
- Cash on Hand: Approximately $460 million (September 30, 2024)
- Capital Expenditures: $151 million (2024)
The company is positioned to continue investing in growth initiatives while returning capital to shareholders through dividends and share repurchases.
How Yum! Brands, Inc. (YUM) Works
Company Overview
Yum! Brands, Inc. operates a global system of over 60,000 restaurants in more than 155 countries and territories. As of September 30, 2024, approximately 98% of these restaurants were owned and operated by franchisees. The company's primary brands include KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill.
Financial Performance
For the quarter ended September 30, 2024, Yum! Brands reported:
- Net Income: $382 million
- Diluted Earnings Per Share (EPS): $1.35
- Total Revenues: $1.826 billion
- Operating Profit: $619 million
- Company Sales: $621 million
Year-to-date figures as of September 30, 2024, include:
- Net Income: $1.063 billion
- Total Revenues: $5.187 billion
- Operating Profit: $1.746 billion
| Metric | Quarter Ended 9/30/2024 | Quarter Ended 9/30/2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Income | $382 million | $416 million | $1.063 billion | $1.134 billion |
| Total Revenues | $1.826 billion | $1.708 billion | $5.187 billion | $5.040 billion |
| Operating Profit | $619 million | $613 million | $1.746 billion | $1.709 billion |
| Diluted EPS | $1.35 | $1.46 | $3.73 | $3.97 |
Segment Performance
Yum! Brands operates through four main segments: KFC, Taco Bell, Pizza Hut, and Habit Burger Grill. Each segment's performance as of September 30, 2024, is outlined below:
| Segment | System Sales (Quarter) | Same-Store Sales Growth (%) | Company Sales (Quarter) | Operating Profit |
|---|---|---|---|---|
| KFC | $8.669 billion | (1%) | $220 million | $339 million |
| Taco Bell | $4.008 billion | 4% | $267 million | $251 million |
| Pizza Hut | $3.184 billion | (2%) | $1 million | $91 million |
| Habit Burger Grill | $161 million | (1%) | $133 million | $1 million |
Cost Structure
Yum! Brands' cost structure for the quarter ended September 30, 2024, included:
- Company Restaurant Expenses: $523 million
- General and Administrative Expenses: $263 million
- Franchise and Property Expenses: $36 million
- Total Costs and Expenses: $1.207 billion
Cash Flow and Liquidity
Yum! Brands reported net cash provided by operating activities of $1.176 billion for the year-to-date period ended September 30, 2024. The cash flows from operations were primarily driven by an increase in operating profit before special items.
| Cash Flow Activity | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $1.176 billion | $1.155 billion |
| Capital Spending | ($151 million) | ($179 million) |
| Net Cash Used in Investing Activities | ($292 million) | ($4 million) |
| Net Cash Used in Financing Activities | ($991 million) | ($921 million) |
Debt and Financing
As of September 30, 2024, Yum! Brands had total debt of approximately $11 billion, with an effective interest rate of about 4.5%. The company's consolidated net leverage ratio was reported at 4.1x EBITDA.
| Debt Maturity Schedule | 2024 | 2025 | 2026 | 2027 | 2028 | Total |
|---|---|---|---|---|---|---|
| Securitization Notes | $938 million | $884 million | $595 million | $589 million | $737 million | $3.743 billion |
| Credit Agreement | $5 million | $21 million | $27 million | $34 million | $1.424 billion | $1.511 billion |
| Revolving Facility | $210 million | - | - | - | - | $210 million |
| YUM Senior Unsecured Notes | $800 million | $1.050 billion | $2.100 billion | $325 million | $275 million | $4.550 billion |
| Total | $5 million | $21 million | $965 million | $1.668 billion | $2.019 billion | $11.201 billion |
Stock Performance and Shareholder Returns
Yum! Brands has a history of returning capital to shareholders through dividends and share repurchase programs. In May 2024, the board authorized share repurchases of up to $2 billion, with approximately $1.7 billion remaining as of September 30, 2024.
| Shareholder Returns | Dividends Declared (2024) | Share Repurchase Authorization Remaining |
|---|---|---|
| Quarterly Dividend per Share | $0.67 | $1.7 billion |
How Yum! Brands, Inc. (YUM) Makes Money
Revenue Streams
Yum! Brands generates revenue primarily through three main segments: KFC, Taco Bell, and Pizza Hut. As of 2024, the company reported total revenues of $5.187 billion, reflecting a 3% increase from the previous year.
KFC Division
The KFC division, with 31,143 units as of September 30, 2024, reported system sales of $25.023 billion, with a same-store sales decline of 3%. The division's total revenues amounted to $2.134 billion, indicating a 3% increase year-over-year. Company restaurant profit for KFC was $60 million, with a company restaurant margin of 12.2%.
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| System Sales (in billions) | $25.023 | $24.975 | 0% |
| Total Revenues (in millions) | $2,134 | $2,069 | 3% |
| Company Restaurant Profit (in millions) | $60 | $47 | 29% |
| Company Restaurant Margin (%) | 12.2% | 13.6% | -1.4 ppts |
| Unit Count | 31,143 | 29,051 | 7% |
Taco Bell Division
The Taco Bell division operates 8,594 units, with system sales of $11.622 billion. The division experienced same-store sales growth of 3%. Total revenues for Taco Bell reached $1.930 billion, a 6% increase year-over-year. Company restaurant profit was $185 million, yielding a margin of 23.9%.
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| System Sales (in billions) | $11.622 | $11.028 | 5% |
| Total Revenues (in millions) | $1,930 | $1,822 | 6% |
| Company Restaurant Profit (in millions) | $185 | $177 | 5% |
| Company Restaurant Margin (%) | 23.9% | 23.9% | Even |
| Unit Count | 8,594 | 8,385 | 2% |
Pizza Hut Division
The Pizza Hut division, with 19,927 units, reported system sales of $9.491 billion. It faced a same-store sales decline of 5%. Total revenues for this division were $715 million, a 3% decrease from the previous year. The company restaurant margin was a negative 1.9%.
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| System Sales (in billions) | $9.491 | $9.780 | -3% |
| Total Revenues (in millions) | $715 | $738 | -3% |
| Company Restaurant Profit (in millions) | $0 | $0 | NM |
| Company Restaurant Margin (%) | -1.9% | 1.2% | -3.1 ppts |
| Unit Count | 19,927 | 19,469 | 2% |
Franchise Contributions and Property Revenues
Franchise and property revenues are significant contributors to Yum! Brands' financial performance. In 2024, franchise and property revenues totaled $2.350 billion, reflecting a slight decrease from $2.351 billion in 2023. Franchise contributions for advertising and other services were $1.170 billion in 2024, down from $1.194 billion the previous year.
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Franchise and Property Revenues (in millions) | $2,350 | $2,351 | Even |
| Franchise Contributions for Advertising (in millions) | $1,170 | $1,194 | -2% |
General and Administrative Expenses
General and administrative (G&A) expenses were $830 million in 2024, a decrease from $840 million in 2023. This reflects Yum! Brands' efforts to optimize operational efficiencies.
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| G&A Expenses (in millions) | $830 | $840 | -1% |
Net Income and Earnings Per Share
Yum! Brands reported a net income of $1.063 billion, down 6% from $1.134 billion in 2023. The diluted earnings per share (EPS) were $3.73, compared to $3.97 in the prior year, reflecting an 8% decline.
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Net Income (in billions) | $1.063 | $1.134 | -6% |
| Diluted EPS | $3.73 | $3.97 | -6% |
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Updated on 16 Nov 2024
Resources:
- Yum! Brands, Inc. (YUM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Yum! Brands, Inc. (YUM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Yum! Brands, Inc. (YUM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.