YUM Earnings Prediction
The chart below shows how YUM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, YUM sees a -2.60% change in stock price 10 days leading up to the earnings, and a +1.59% change 10 days following the report. On the earnings day itself, the stock moves by +0.79%. This data can give you a slight idea of what to expect for the next quarter's release.
YUM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.36B
16.01%
29.35%
Gross Margin
44.41%
-7.07%
-6.37%
Operating Margin
29.72%
-5.44%
-12.04%
Net Margin
17.91%
-21.24%
-14.39%
EPS
1.48
-9.76%
10.45%
No Data Available
YUM Earnings Analysis
Yum! Brands Inc Corporation (YUM.N) Earnings Conference Call
Positive
Digital Sales Growth: Achieved over 50% of system sales through digital channels, with digital sales growing approximately 15% in 2024, highlighting the effectiveness of the digital-first strategy.
Core Operating Profit Milestone: Taco Bell generated over $1 billion in core operating profit for the first time, contributing to an overall core operating profit growth of 8% for the year.
International Profit Growth: KFC International saw a 14% core operating profit growth in Q4, driven by strong performance in key markets, including a 9% same store sales increase in Africa.
Global Unit Expansion: Opened over 4,500 new units globally in 2024, with KFC leading the way by opening nearly 2,900 new units, demonstrating strong franchisee confidence and growth potential.
Dividend Increase and Shareholder Returns: Increased quarterly dividend to $0.71 per share and returned $1.2 billion to shareholders through dividends and share repurchases, reflecting strong financial health and commitment to shareholder value.
Negative
Same Store Sales Decline: Same store sales declined 1% for the year, impacted by broader global consumer sentiment, particularly in markets affected by the Middle East conflict.
Sales Decline Challenges: Pizza Hut's full year system sales declined 1%, indicating challenges in maintaining growth despite new unit openings.
Sales Decline in Conflict Areas: KFC International faced a 12% decline in system sales in markets heavily impacted by the Middle East conflict for the full year, highlighting significant regional challenges.
Effective Tax Rate Increase: The effective tax rate ended the year at 23.5%, exceeding the previously communicated range of 21% to 23%, due to higher tax expenses from the sale of an investment.
G&A Expense Increase Impact: G&A expenses are expected to increase by a mid single digit percentage in 2025, indicating potential pressure on profitability despite efforts to optimize costs.
YUM FAQs
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YUM Earning Call Sentiment
Earnings call transcript: Yum! Brands Q4 2024 sees steady earnings, stock rises
YUM.N
1.46%Positive
The earnings call highlights strong financial performance with 8% core operating profit growth, significant shareholder returns, and robust digital sales. While there are some concerns about international franchisees and Turkey closures, the overall sentiment is positive, driven by strategic initiatives like digital growth and KFC recovery. The Q&A reflects confidence in future growth and tech capabilities. Shareholder returns through dividends and buybacks further bolster the positive outlook. Given these factors, a positive stock price movement is expected over the next two weeks.
