News

Yum! Brands reports 2014, Q4 financial results

Yum! Brands Inc. reported full-year 2014 results and results for Q4 ended Dec. 27, 2014.

February 5, 2015

Yum! Brands Inc. reported full-year 2014 results and results for Q4 ended Dec. 27, 2014. 

2014 highlights:

• Worldwide system sales grew 3 percent. Worldwide restaurant margin decreased 0.5 percentage points to 14.5 percent. Worldwide operating profit increased 1 percent.
• New international restaurants totaled a record 2,034, including 737 in China, 666 at KFC, 465 at Pizza Hut and 156 in India; 80 percent of this development occurred in emerging markets.
• China Division system sales increased 1 percent, driven by 8 percent unit growth and offset by a 5 percent same-store sales decline. Restaurant margin decreased 0.6 percentage points to 14.8 percent. Operating profit decreased 8 percent.
• KFC Division system sales increased 6 percent, driven by 2 percent unit growth and 3 percent same-store sales growth. Restaurant margin increased 0.7 percentage points to 13.3 percent. Operating profit increased 13 percent.
• Pizza Hut Division system sales increased 1 percent, driven by 2 percent unit growth and offset by a 1 percent same-store sales decline. Restaurant margin decreased 3.5 percentage points to 8.2 percent. Operating profit decreased 13 percent.
• Taco Bell Division system sales increased 4 percent, driven by 2 percent unit growth and 3 percent same-store sales growth. Restaurant margin decreased 0.6 percentage points to 18.9 percent. Operating profit increased 5 percent.
• India Division system sales increased 14 percent, driven by 18 percent unit growth and offset by a 5 percent same-store sales decline.
• Foreign currency translation negatively impacted operating profit by $27 million.

Q4 highlights:

• Worldwide system sales grew 3 percent. Worldwide restaurant margin decreased 4.0 percentage points to 10.2 percent. Worldwide operating profit decreased 24 percent.
• China Division system sales decreased 11 percent, as 8 percent unit growth was offset by a 16 percent same-store sales decline. Restaurant margin decreased 7.2 percentage points to 7.1 percent. Operating profit decreased 84 percent.
• KFC Division system sales increased 7 percent, driven by 2 percent unit growth and 4 percent same-store sales growth. Restaurant margin increased 1.4 percentage points to 13.8 percent. Operating profit increased 19 percent.
• Pizza Hut Division system sales increased 2 percent, driven by 2 percent unit growth. Same-store sales were even. Restaurant margin decreased 2.7 percentage points to 6.4 percent. Operating profit decreased 11 percent.
• Taco Bell Division system sales increased 9 percent, driven by 2 percent unit growth and 6 percent same-store sales growth. Restaurant margin increased 0.3 percentage points to 20.6 percent. Operating profit increased 20 percent.
• India Division system sales increased 6 percent, driven by 18 percent unit growth and offset by a 10 percent same-store sales decline.
• Foreign currency translation negatively impacted operating profit by $11 million.