Our mission is to build the world’s most loved, trusted and fastest growing restaurant brands. We are evolving KFC, Pizza Hut Taco Bell and The Habit Burger Grill into iconic, distinctive and relevant global brands.
About Yum! Brands
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Pizza Hut
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Yum! Brands isn’t your average Fortune 500 company – we like to do things a little differently. From our world-famous culture of fun and recognition to our focus on your career potential, Yum! puts a unique stamp on day-to-day business. You will see why the passion of our people and the power of our brands are just two reasons there’s no place like Yum!.
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Yum! Brands is focused on building KFC, Pizza Hut, Taco Bell and The Habit Burger Grill to be the world’s most loved, trusted and fastest growing restaurant brands. As a global company that serves millions of consumers at 53,000 restaurants across 155 countries and territories,we aim to make the world better by acting responsibly with respect to food, planet and people.
Yum! Brands, Inc., based in Louisville, Kentucky, and its subsidiaries franchise or operate a system of over 57,000 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 of 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. In 2023, the KFC, Taco Bell and Pizza Hut brands were ranked in the top five of Entrepreneur’s Top Global Franchises Ranking. In addition, in 2023 Yum! Brands was included on the Bloomberg Gender-Equality Index; Forbes’ list of America’s Best Employers for Diversity; and Newsweek’s lists recognizing America’s Most Responsible Companies, America’s Greatest Workplaces for Diversity, America's Greenest Companies and America’s Greatest Workplaces for Women. In 2022, the Company was named to the Dow Jones Sustainability Index North America.
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Yum! Brands is focused on building KFC, Pizza Hut, Taco Bell and The Habit Burger Grill to be the world’s most loved, trusted and fastest growing restaurant brands. As a global company that serves millions of consumers at 53,000 restaurants across 155 countries and territories, we aim to make the world better by acting responsibly with respect to food, planet and people.
Company News
Press Release Archive
Yum! At A Glance
LOUISVILLE, Ky.--(BUSINESS WIRE)-- Yum! Brands, Inc. (NYSE: YUM) today reported results for the fourth-quarter and year ended December 31, 2021. Fourth-quarter GAAP EPS was $1.11, an increase of 3%. Full-year GAAP EPS was $5.21, an increase of 77%. Fourth-quarter EPS excluding Special Items was $1.02, a decrease of (12)%. Full-year EPS excluding Special Items was $4.46, an increase of 23%.
DAVID GIBBS & CHRIS TURNER COMMENTS
David Gibbs, CEO, said “We opened an astounding 4,180 gross units in 2021, marking the strongest growth year in Yum!'s history and setting a restaurant industry record for unit development. We also reached new heights in digital sales that topped $22 billion. I’m confident and energized heading into 2022, which marks Yum!’s 25th anniversary, as we continue to build the world’s most loved and trusted brands while delivering lasting value for our stakeholders.”
Chris Turner, CFO, said “Our fiscal 2021 system sales growth of 13%, with 10% same store sales and 6% unit growth, illustrates the health of our global system – iconic Brands, capable, committed, and well-capitalized franchise partners and strong unit economics. During the quarter, system sales grew 9% including 5% same store sales growth, or 4% on a 2-year basis. We remain focused on fueling growth, with confidence in our Recipe for Growth and Good strategies, and delivering on our long-term growth algorithm in fiscal 2022 and beyond.”
SUMMARY FINANCIAL TABLE
Fourth-Quarter
Full-Year
2021
2020
% Change
GAAP EPS
$1.11
$1.08
+3
$5.21
$2.94
+77
Special Items EPS1
$0.09
$(0.07)
NM
$0.75
$(0.68)
EPS Excluding Special Items
$1.02
$1.15
(12)
$4.46
$3.62
+23
1 See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Special Items.
All comparisons are versus the same period a year ago.
System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further details.
Digital sales includes all transactions where consumers at system restaurants utilize ordering interaction that is primarily facilitated by automated technology.
FOURTH-QUARTER HIGHLIGHTS
System Sales Ex F/X
Same-Store Sales
Units
GAAP Operating Profit
Core Operating Profit1
KFC Division
+10
+5
+8
+11
+12
Taco Bell Division
(7)
Pizza Hut Division
+4
(1)
Worldwide
+9
+6
FULL-YEAR HIGHLIGHTS
+16
+33
+29
+13
+7
+42
+18
1See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Core Operating Profit and Special Items.
KFC DIVISION
%/ppts Change
Reported
Ex F/X
Restaurants
26,934
25,000
NA
System Sales ($MM)
8,576
7,805
31,365
26,289
+19
Same-Store Sales Growth (%)
(2)
(9)
Franchise & Property Revenues ($MM)
433
389
1,557
1,295
+20
+17
Operating Profit ($MM)
298
267
1,230
922
Operating Margin (%)
37.5
37.6
(0.1)
0.0
44.0
40.6
3.4
3.5
Fourth-Quarter (% Change)
Full-Year (% Change)
International
U.S.
System Sales Growth Ex F/X
Same-Store Sales Growth
KFC Markets1
Percent of KFC System Sales2
China
26%
(3)
United States
17%
Asia
11%
Russia, Central & Eastern Europe
8%
+35
Australia
7%
United Kingdom
+38
Western Europe
6%
+30
+26
Latin America
5%
+31
+32
Africa
4%
Middle East / Turkey / North Africa
+40
Canada
2%
Thailand
(6)
India
1%
+60
+68
1Refer to investors.yum.com under Financial Reports for a list of the countries within each of the markets.
2Reflects Full Year 2021.
TACO BELL DIVISION
7,791
7,427
4,068
3,671
13,280
11,745
+1
224
202
742
662
198
212
758
696
28.9
33.8
(4.9)
33.9
34.3
(0.4)
PIZZA HUT DIVISION
18,381
17,639
3,546
3,407
12,955
11,955
162
159
597
552
81
83
387
335
29.2
28.7
0.5
0.6
37.7
33.5
4.2
4.0
Even
Pizza Hut Markets1
Percent of Pizza Hut System Sales2
(% Change)
43%
16%
+14
14%
+2
Latin America / Spain / Portugal
10%
+15
Europe (excluding Spain & Portugal)
3%
+57
+59
<1%
THE HABIT BURGER GRILL DIVISION
OTHER ITEMS
CONFERENCE CALL
Yum! Brands, Inc. will host a conference call to review the company's financial performance and strategies at 8:15 a.m. Eastern Time Wednesday, February 9, 2022. The number is 877/871-3172 in the U.S., 1-877-504-2267 in Canada and 1-412-902-6603 for international callers, conference ID 2088582.
The call will be available for playback beginning at 10:00 a.m. Eastern Time February 9, 2022 through February 16, 2022. To access the playback, dial 877/344-7529 in the U.S., 855/669-9658 in Canada, and 412/317-0088 internationally, conference ID 2558485.
The webcast and the playback can be accessed via the website by visiting Yum! Brands' website, investors.yum.com/events-and-presentations and selecting “Q4 2021 Earnings Conference Call.”
ADDITIONAL INFORMATION ONLINE
Quarter end dates for each division, restaurant count details, definitions of terms and Restricted Group financial information are available at investors.yum.com. Reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures are included within this release.
FORWARD-LOOKING STATEMENTS
This announcement may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “expect,” “expectation,” “believe,” “anticipate,” “may,” “could,” “intend,” “belief,” “plan,” “estimate,” “target,” “predict,” “likely,” “seek,” “project,” “model,” “ongoing,” “will,” “should,” “forecast,” “outlook” or similar terminology. These statements are based on and reflect our current expectations, estimates, assumptions and/or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance or capital structure of Yum! Brands, will prove to be correct or that any of our expectations, estimates or projections will be achieved.
Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: the severity and duration of the COVID-19 pandemic; food safety and food borne-illness issues; the occurrence of a significant health epidemic or other catastrophic event; the success of our franchisees and licensees; our significant exposure to the Chinese market; changes in economic and political conditions in, and other risks associated with, countries and territories outside of the U.S. where we operate; changes in currency exchange rates; our ability to protect the integrity and security of personal information of our customers and employees, and other cybersecurity risks; our ability to successfully implement technology initiatives; our increasing dependence on multiple digital commerce platforms; the impact of social media; our ability to secure and maintain distribution and adequate supply to our restaurants; the loss of key personnel, or labor shortages or difficulty finding qualified employees; the success of our development strategy, including in emerging markets; changes in commodity, labor and other operating costs; the impact of climate change and other environmental and sustainability matters; pending or future litigation and legal claims or proceedings; changes in or noncompliance with government regulations, including data privacy laws, labor standards, and anti-bribery or anti-corruption laws; tax matters, including changes in tax laws or disagreements with taxing authorities; consumer preferences and perceptions of our brands and corporate reputation; failure to protect our service marks or other intellectual property; changes in consumer discretionary spending and general economic conditions; competition within the retail food industry; not realizing the anticipated benefits from past or potential future acquisitions, investments or other strategic transactions; and risks relating to our significant amount of indebtedness. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.
The forward-looking statements included in this announcement are only made as of the date of this announcement and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions “Risk Factors” and “Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q) for additional detail about factors that could affect our financial and other results.
Yum! Brands, Inc., based in Louisville, Kentucky, has over 53,000 restaurants in more than 155 countries and territories, operating the Company’s brands – KFC, Pizza Hut and Taco Bell – global leaders of the chicken, pizza and Mexican-style food categories. The Company’s family of brands also includes The Habit Burger Grill, a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. In 2021, Yum! Brands was named to the Dow Jones Sustainability Index North America and was ranked on Newsweek’s list of America’s Most Responsible Companies.
YUM! Brands, Inc.
Consolidated Summary of Results
(amounts in millions, except per share amounts)
(unaudited)
Quarter ended
% Change B/(W)
Year ended
B/(W)
12/31/21
12/31/20
Revenues
Company sales
$
566
5
2,106
1,810
16
Franchise and property revenues
820
750
10
2,900
2,510
Franchise contributions for advertising and other services
473
427
1,578
1,332
18
Total revenues
1,890
1,743
8
6,584
5,652
Costs and Expenses, Net
Company restaurant expenses
495
460
(8)
1,725
1,506
(15)
General and administrative expenses
371
340
1,060
1,064
—
Franchise and property expenses
36
38
117
145
Franchise advertising and other services expense
486
(14)
1,576
1,314
(20)
Refranchising (gain) loss
(14
)
(4
246
(35
(34
2
Other (income) expense
14
154
Total costs and expenses, net
1,388
1,261
(10)
4,445
4,149
Operating Profit
502
482
4
2,139
1,503
42
Investment (income) expense, net
(7
396
(86
(74
Other pension (income) expense
1
79
7
48
Interest expense, net
128
132
3
544
543
Income before income taxes
407
352
1,674
1,020
64
Income tax provision
77
20
(274)
99
116
15
Net income
330
332
1,575
904
74
Basic EPS
EPS
1.13
1.10
5.30
2.99
78
Average shares outstanding
293
302
297
Diluted EPS
1.11
1.08
5.21
2.94
307
Dividends declared per common share
0.50
0.47
2.00
1.88
See accompanying notes.
Percentages may not recompute due to rounding.
KFC DIVISION Operating Results
(amounts in millions)
173
160
596
506
12
188
640
471
794
711
2,793
2,272
23
144
490
439
138
122
(13)
377
346
25
22
(17)
91
Franchise advertising and other services expenses
189
164
(16)
627
465
(35)
(5
9
496
444
1,563
1,350
11
33
Company restaurant margin %1
16.3
%
17.5
(1.2) ppts.
17.7
13.2
4.5 ppts.
Operating margin
(0.1) ppts.
3.4 ppts.
1See reconciliation of Non-GAAP Measurements to GAAP results within this release for further detail of Company restaurant margin %.
TACO BELL DIVISION Operating Results
288
272
6
944
882
172
487
684
628
2,238
2,031
199
(11)
719
657
70
50
(43)
174
158
(25)
176
553
484
416
1,480
1,335
22.6
26.6
(4.0) ppts.
23.9
25.5
(1.6) ppts.
(4.9) ppts.
(0.4) ppts.
PIZZA HUT DIVISION Operating Results
19
(66)
46
76
(40)
112
111
385
374
281
289
1,028
1,002
65
43
73
41
201
215
67
17
37
120
109
395
365
(2
(1
(9
(3
200
206
641
667
6.1
10.0
(3.9) ppts.
6.8
5.1
1.7 ppts.
0.5 ppts.
4.2 ppts.
Consolidated Balance Sheets
ASSETS
Current Assets
Cash and cash equivalents
730
Accounts and notes receivable, less allowance: $36 in 2021 and $45 in 2020
534
Prepaid expenses and other current assets
450
425
Total Current Assets
1,532
1,689
Property, plant and equipment, net of accumulated depreciation of $1,270 in 2021 and $1,230 in 2020
1,207
1,235
Goodwill
Intangible assets, net
359
343
Other assets
1,487
1,435
Deferred income taxes
724
Total Assets
5,966
5,852
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities
Accounts payable and other current liabilities
1,334
1,189
Income taxes payable
13
Short-term borrowings
68
453
Total Current Liabilities
1,415
1,675
Long-term debt
11,178
10,272
Other liabilities and deferred credits
1,746
1,796
Total Liabilities
14,339
13,743
Shareholders' Deficit
Common Stock, no par value, 750 shares authorized; 289 shares and 300 shares issued in 2021 and 2020, respectively
Accumulated deficit
(8,048
(7,480
Accumulated other comprehensive loss
(325
(411
Total Shareholders' Deficit
(8,373
(7,891
Total Liabilities and Shareholders' Deficit
Consolidated Statements of Cash Flows
Cash Flows - Operating Activities
Depreciation and amortization
146
Impairment and closure expense
(200
(65
Share-based compensation expense
75
97
Changes in accounts and notes receivable
(46
62
Changes in prepaid expenses and other current assets
(33
Changes in accounts payable and other current liabilities
Changes in income taxes payable
(41
(110
Other, net
192
71
Net Cash Provided by Operating Activities
1,706
1,305
Cash Flows - Investing Activities
Capital spending
(230
(160
Acquisition of The Habit Restaurants, Inc., net of cash acquired
(408
Proceeds from sale of investment in Grubhub, Inc. common stock
Proceeds from refranchising of restaurants
85
(28
Net Cash Used in Investing Activities
(173
(335
Cash Flows - Financing Activities
Proceeds from long-term debt
4,150
1,650
Repayments of long-term debt
(3,657
(1,517
Revolving credit facilities, three months or less, net
Short-term borrowings, by original maturity
More than three months - proceeds
95
More than three months - payments
(100
Three months or less, net
Repurchase shares of Common Stock
(1,591
(239
Dividends paid on Common Stock
(592
(566
Debt issuance costs
(37
(20
(40
Net Cash Used in Financing Activities
(1,767
(738
Effect of Exchange Rate on Cash and Cash Equivalents
(19
24
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
(253
256
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - Beginning of Year
1,024
768
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - End of Year
771
Reconciliation of Non-GAAP Measurements to GAAP Results (amounts in millions, except per share amounts) (unaudited)
In addition to the results provided in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), the Company provides the following non-GAAP measurements.
These non-GAAP measurements are not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of these non-GAAP measurements provide additional information to investors to facilitate the comparison of past and present operations.
Special Items are not included in any of our Division segment results as the Company does not believe they are indicative of our ongoing operations due to their size and/or nature. Our chief operating decision maker does not consider the impact of Special Items when assessing segment performance. The Special Items are described in (a) - (i) in the accompanying notes.
Company restaurant profit is defined as Company sales less Company restaurant expenses, both of which appear on the face of our Consolidated Statements of Income. Company restaurant expenses include those expenses incurred directly by our Company-owned restaurants in generating Company sales, including cost of food and paper, cost of restaurant-level labor, rent, depreciation and amortization of restaurant-level assets and advertising expenses incurred by and on behalf of that Company restaurant. Company restaurant margin as a percentage of sales ("Company restaurant margin %") is defined as Company restaurant profit divided by Company sales. We use Company restaurant profit for the purposes of internally evaluating the performance of our Company-owned restaurants and we believe Company restaurant profit provides useful information to investors as to the profitability of our Company-owned restaurants. In calculating Company restaurant profit, the Company excludes revenues and expenses directly associated with our franchise operations as well as non-restaurant-level costs included in General and administrative expenses, some of which may support Company-owned restaurant operations. The Company also excludes restaurant-level asset impairment and closures expenses, which have historically not been significant, from the determination of Company restaurant profit as such expenses are not believed to be indicative of ongoing operations. Company restaurant profit and Company restaurant margin % as presented may not be comparable to other similarly titled measures of other companies in the industry.
Certain non-GAAP measurements are presented excluding the impact of FX. These amounts are derived by translating current year results at prior year average exchange rates. We believe the elimination of the FX impact provides better year-to-year comparability without the distortion of foreign currency fluctuations.
Detail of Special Items
Refranchising gain (loss)(a)
Costs associated with acquisition and integration of Habit Burger Grill(b)
Impairment of Habit Burger Grill goodwill(c)
(144
Unlocking Opportunity Initiative contribution(d)
(50
COVID-19 relief contribution(e)
(25
Charges associated with resource optimization(f)
(36
Other Special Items Income (Expense)
(11
Special Items Income (Expense) - Operating Profit
(8
(267
Charges associated with resource optimization - Other pension (expense) income(f)
Interest expense, net(g)
Special Items Income (Expense) before Income Taxes
(42
(303
Tax Benefit (Expense) on Special Items(h)
Tax Benefit - Intra-entity transfer of intellectual property(i)
35
251
28
Special Items Income (Expense), net of tax
26
(24
226
(210
Average diluted shares outstanding
Special Items diluted EPS
0.09
(0.07
0.75
(0.68
Reconciliation of GAAP Operating Profit to Core Operating Profit
Consolidated
Special Items Expense
Foreign Currency Impact on Divisional Operating Profit
N/A
54
Core Operating Profit
511
516
2,094
1,770
45
299
1,185
757
379
Habit Burger Grill Division
GAAP Operating Profit (Loss)
(22
Reconciliation of Diluted EPS to Diluted EPS excluding Special Items
Special Items Diluted EPS
Diluted EPS excluding Special Items
1.02
1.15
4.46
3.62
Reconciliation of GAAP Effective Tax Rate to Effective Tax Rate excluding Special Items
GAAP Effective Tax Rate
18.8
5.8
5.9
11.4
Impact on Tax Rate as a result of Special Items
(7.9
)%
(2.5
(15.5
(4.5
Effective Tax Rate excluding Special Items
26.7
8.3
21.4
15.9
Reconciliation of GAAP Operating Profit to Company Restaurant Profit
Quarter ended 12/31/2021
Corporate and Unallocated
(71
Less:
Add:
Company restaurant profit
29
102
129
Company restaurant margin %
7.0
17.2
Quarter ended 12/31/2020
(73
106
115
Year ended 12/31/2021
(238
260
225
47
381
520
9.0
18.1
Year ended 12/31/2020
(428
312
304
2.6
16.8
Segment Results
Quarter Ended 12/31/21
131
135
Operating Profit (Loss)
Quarter Ended 12/31/20
The above tables reconcile segment information, which is based on management responsibility, with our Consolidated Summary of Results. Corporate and unallocated expenses comprise items that are not allocated to segments for performance reporting purposes.
The Corporate and Unallocated column in the above tables includes, among other amounts, all amounts that we have deemed Special Items. See Reconciliation of Non-GAAP Measurements to GAAP Results.
Year Ended 12/31/21
525
523
238
Year Ended 12/31/20
347
337
91 </