Please see our Safe Harbor Statement.
At Yum!, we have a clear vision for building the world’s most loved, trusted and fastest growing restaurant brands. It begins with our franchisees and restaurant team members who bring our vision to life, one meal at a time. As the world’s largest restaurant company, our unified global system of more than 53,000 restaurants in over 155 countries serves millions of customers each day, provides opportunities for our team members and supports the communities in which we operate.
Before looking back at last year’s accomplishments, I want to acknowledge that while we see a bright future ahead for our global business in 2022 and beyond, our hearts are with the people impacted by the crisis currently playing out in Ukraine. We hope for peace to be restored in the region, and we are taking action to help ensure the safety of our people, support humanitarian causes in the region and suspend key components of our operations in Russia.
Reflecting on 2021, I am incredibly proud of the collective accomplishments of our Yum! teams, franchise partners and restaurant team members around the world. We maximized the structural advantages of our diversified global portfolio by leveraging our unmatched global scale, sophisticated supply chains, marketing and consumer insights expertise, and our growing digital and technology capabilities to fuel growth and deliver strong results. Our 2021 results show that our portfolio of iconic brands, run by the very best in the business and guided by our Recipe for Growth & Good, can thrive and win in any environment. We’re entering 2022 in an enviable position that’s underpinned by the resiliency of our highly-franchised business model and our relevant, easy and distinctive brands.
2021 Highlights: We remain committed to advancing our Recipe for Growth. During 2021, we opened nearly 4,200 restaurants in over 110 countries, resulting in 3,057 net-new units and signaling that our develop ment engine is diversified and stronger than ever. This accelerated restaurant development is a testament to the health of our business. Our digital sales reached new heights hitting $22 billion in 2021, an increase of approximately 25% year over year and demonstrating a more permanent shift to these channels. We galvanized our digital and technology strategy and advanced the development of our ecosystem with both internal investments and the closing of the Kvantum, Tictuk and Dragontail acquisitions. Our investments in digital and technology that enable Easy Experiences, Easy Operations and Easy Insights are proving to both support and accelerate our growth.
We also continued to make progress on our Recipe for Good in 2021, focused on our three priority pillars: People, Food and Planet. During the year, we invested in Yum!’s social purpose, unlocking opportunities for our people and communities through initiatives like the launch of the Yum! Center for Global Franchise Excellence at the University of Louisville, a first-of-its-kind business program offering multiple levels of online education that emphasize the possibilities of franchising as a pathway to entrepreneurship for underrepresented people of color and women. We continue to introduce relevant and distinctive plant-based offerings through our partnership with Beyond Meat. In addition, we announced science-based targets to reduce greenhouse gas emissions nearly 50% by 2030 and pledged to achieve net-zero emissions by 2050.
To bring these accomplishments to life, let me share specific highlights from each of our brands:
Our Recipe for Growth’s four growth drivers are our foundation to build sustainable, long-term results. Outlined below, they drive higher same-store sales and net-new unit growth and serve as our guiding principles across all business decisions.
Our Recipe for Good continues to reflect our priorities for social responsibility, risk management and sustainable stewardship of our People, Food and Planet.
In closing, our record unit development during 2021 marked the strongest growth year in Yum!’s history. We’re entering 2022, which marks Yum!’s 25th anniversary, stronger than ever, guided by our Recipe for Growth & Good strategies. I’m excited for the year ahead as we continue our efforts to remain among the world’s most loved, trusted and fastest growing restaurant brands while delivering lasting value for our stakeholders. Thank you to our shareholders, customers and Yum! family for your continued support.
David Gibbs, CEO
David Gibbs,
Chief Executive Officer,
Yum! Brands, Inc.
(In millions, except for per share amounts) Year-end |
2021 |
2020 |
%B/(W)change |
Company Sales | $2,106 | $1,810 | 16 |
Franchise and property revenues | 2,900 | 2,510 | 16 |
Franchise contributions for advertising and other services | 1,578 | 1,332 | 18 |
Total Revenues | $6,584 | $5,652 | 16 |
Operating Profit | $2,139 | $1,503 | 42 |
Net Income | $1,575 | $904 | 74 |
Reported Diluted Earnings Per Common Share from Continuing Operations | $5.21 | $2.94 | 77 |
Special Items Diluted Earnings Per Common Share (a) | .75 | (.68) | NM |
Diluted Earnings Per Common Share from Continuing Operations before Special Items (a) | $4.46 | $3.62 | 23 |
Net Cash Provided by Operating Activities | $1,706 | $1,305 | 31 |
(a) See our 2021 Form 10-K for further discussion of Special Items.